IBM Put Options Remain Active as Earnings Fears Linger

While the market plays the role of Doubting Thomas, option activity continues to signal otherwise leading up to IBM's(IBM Quote) earnings announcement.

In the last three weeks, there has been a lot of noise in the option pits that IBM would issue a profit warning or miss its quarterly estimates. Because of the staggering number of companies lowering their guidance, option traders have taken up the belief that no one is immune to the slowdown. For example, last week, Emerson (EMR Quote), the Cal Ripken of earnings growth, warned that it expects an 11% drop in second-quarter earnings. Prior to that announcement, Emerson had enjoyed 43 straight years of consistent earnings growth.

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