Weekend Trader Series
October 26, 2025
Open Positions Update
There are no portfolio updates this week.The following is this week's recommendation:
IBM (IBM)Place a limit order to buy the IBM (IBM) January 16, 2026 300-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, October 24, this option was offered at $22.15. IBM closed at $307.46 on Friday, October 24.Do not attempt to enter this position after Monday's close.Please use the following guidelines to manage the position:- Exit the position if the option is at a 100% gain from your entry price.
- If the option has not reached its target profit by 3:00 p.m. Eastern time on Monday, November 24, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
IBM (IBM) stock staged a bullish reversal after slipping to an Oct. 23, post-earnings low near the 50-day moving average. There was follow-through buying the following session, amid reports of quantum computing algorithm progress. Shares then proceed to break out above the $296 level, completing a bullish cup and handle pattern that targets $355.
Analysts remain skeptical of IBM, with 14 of the 22 brokerage firms in coverage sporting a tepid "hold" or worse rating. This means there is plenty of room for upgrades, which would boost the shares. It’s also worth noting that, based on Friday’s options prices, our recommended option doubles before the pattern’s target.
Our recommended January 16, 2026 300-strike call has a leverage ratio of 8.3 and will double on a 12% rise in the underlying equity.
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