IBM (IBM) Offering Possible 14.16% Return Over the Next 12 Calendar Days

IBM's most recent trend suggests a bearish bias. One trading opportunity on IBM is a Bear Call Spread using a strike $192.50 short call and a strike $197.50 long call offers a potential 14.16% return on risk over the next 12 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $192.50 by expiration. The full premium credit of $0.62 would be kept by the premium seller. The risk of $4.38 would be incurred if the stock rose above the $197.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for IBM is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for IBM is bearish.

The RSI indicator is at 53.7 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for IBM

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Mon, 08 Sep 2014 18:18:00 GMT

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Is IBM’s Watson Supercomputer Smart Enough to Up the Firm’s Profit?
Mon, 08 Sep 2014 12:00:00 GMT
TheStreet – Could the machine figure out how to increase the annual profit of IBM from $16.5 billion to $22.8 billion, which is what Microsoft makes?

IBM And Intel Combine To Deliver Chip-Level Security
Mon, 08 Sep 2014 04:01:00 GMT
Forbes – There’s a strange thing happening with Intel and it’s partners (and, before I go on, I have to disclose that this week I’m attending the Intel Developer Forum and Intel is covering my travel and expenses to attend the event). On the one hand, more and more customers are attracted […]

CenturyLink Looking To Acquire Rackspace? Natural Synergies Or An Awkwardly Sprawling Portfolio?
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