Shares of IBM just did something they haven’t done in 15 years

"Big Blue" is having a big week.

Shares of IBM surged over 9 percent on Wednesday after the company reported better-than-expected earnings. The move lifted the Dow to record highs and would represent the most positive earnings reaction for the tech giant since 2002. It would also mark only the third time in the last 18 quarters the stock gapped higher following a report, according to Bespoke Investment Group data.

Despite Wednesday's rally, the stock is still down 4 percent this year, but some are betting the worst could be behind it.

"IBM has been doing the right things, they just got to them kind of late," Max Wolff, chief economist at Disruptive Technology Advisers, said Tuesday on "Power Lunch."

Specifically, he pointed to progress the company has made in moving into cloud software and "flirting" with blockchain technology capabilities.

Options activity was also bullish heading into the earnings report.

"I do see people going in and buying upside calls," Dennis Davitt, partner and portfolio manager at Harvest Volatility Management, said Tuesday on CNBC's "Power Lunch."

He added, "I think it's a waste of money to buy upside calls in IBM."

The company should be "less concerned" about stock buybacks and dividends, Davitt said, and more concerned about being more "nimble" and playing catch up to other tech giants.

IBM has been a massive underperformer over the last several years, falling more than 20 percent since 2012 while the Dow Jones industrial average is up nearly 70 percent in that time.

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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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