International Business Machines Corporation (IBM) Covered Calls

International Business Machines Corporation covered calls IBM (International Business Machines Corporation) is a leading provider of global hybrid cloud and AI solutions, alongside high-value consulting expertise. The company designs and sells enterprise-grade software and infrastructure, including the iconic zSystems mainframes and the watsonx AI and data platform. IBM helps clients across more than 175 countries modernize core systems, automate complex workflows, and integrate secure, governed AI into their operations.

You can sell covered calls on International Business Machines Corporation to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for IBM (prices last updated Fri 4:16 PM ET):

International Business Machines Corporation (IBM) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
262.38 +2.86 261.51 262.97 6.5M 31 243
Covered Calls For International Business Machines Corporation (IBM)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 262.5 4.80 258.17 1.7% 77.6%
Mar 20 260 13.10 249.87 4.1% 41.6%
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Core Business and Products

International Business Machines Corporation (IBM) has successfully repositioned itself as a software-led leader in hybrid cloud and artificial intelligence. In early 2026, the company operates as the primary orchestrator for enterprises that require "sovereign" and highly regulated digital environments. Its business model is built on three high-margin segments that work in tandem to drive recurring revenue:

  1. Software and Hybrid Cloud: This is IBM's largest and fastest-growing segment. It is anchored by Red Hat OpenShift, the industry's leading hybrid cloud platform, and "watsonx," a dedicated AI development studio. In January 2026, IBM launched "Sovereign Core," the first software suite designed for national and corporate AI data centers that must keep data within specific jurisdictional boundaries. The recent acquisition of Confluent has also unified its automation and real-time data streaming capabilities.
  2. IBM Consulting: With over 75,000 specialized AI consultants, this division helps global organizations redesign their workflows around "Agentic AI." By 2026, over 80% of IBM’s consulting backlog is tied to digital transformation projects involving generative AI and hybrid cloud migration.
  3. Infrastructure and IBM Z: IBM remains the dominant provider of mission-critical hardware. The "z17" mainframe, released in 2025, features on-chip AI acceleration that allows financial institutions to perform 50% more real-time fraud detection operations than previous generations. This segment also includes "Quantum Nighthawk," IBM’s most advanced quantum processor to date.

Competitive Landscape

IBM competes in a complex landscape where it often partners with the same "hyperscale" firms it vies with for enterprise budget share:

  1. Cloud and AI Platform Rivals: IBM competes for enterprise cloud workloads with Microsoft (Azure) and Amazon (AWS). Unlike these general-purpose clouds, IBM distinguishes itself through its "Hybrid-First" approach and deep expertise in highly regulated industries like banking and healthcare.
  2. Consulting and Services Peers: In the professional services market, IBM’s most direct rival is Accenture. It also competes with global firms like Infosys and Cognizant Technology Solutions for large-scale IT modernization contracts.
  3. Data and Infrastructure Competitors: For data management and infrastructure software, IBM competes with Oracle and SAP. In the high-performance networking space, it increasingly overlaps with Arista Networks and Hewlett Packard Enterprise.

Strategic Outlook and Innovation

As of February 2026, IBM is targeting "Quantum Advantage," the point at which a quantum computer can solve specific problems more efficiently than any classical method. The company expects to confirm verified quantum advantage by the end of this year, focusing on material science and financial optimization. Strategically, IBM is moving toward an "Agentic-First" enterprise model, where its internal "Project Bob" system has already automated 45% of its own software development tasks. Financially, the company has projected a record $15.7 billion in free cash flow for 2026, supported by its "Blue Chip Renaissance"—a period of renewed Wall Street conviction in IBM’s ability to win the "back-office" AI battle. By focusing on efficient, domain-specific AI models rather than general-purpose LLMs, IBM is positioning itself as the high-trust, high-margin foundation for the next decade of industrial computing.