IBM (IBM) Offering Possible 23.46% Return Over the Next 40 Calendar Days

IBM's most recent trend suggests a bearish bias. One trading opportunity on IBM is a Bear Call Spread using a strike $190.00 short call and a strike $200.00 long call offers a potential 23.46% return on risk over the next 40 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $190.00 by expiration. The full premium credit of $1.90 would be kept by the premium seller. The risk of $8.10 would be incurred if the stock rose above the $200.00 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 32.78 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

Dow Jones (DJIA) Today: International Business Machines (IBM) Lags
Mon, 13 Oct 2014 20:30:00 GMT
TheStreet – Holding the Dow back today was International Business Machines (NYSE:IBM), which lagged the broader Dow index with a $2.41 decline (-1.3%) bringing the stock to $183.52.

Avoiding a tech wreck
Mon, 13 Oct 2014 19:40:00 GMT

Stronger Dollar A Headwind For Companies With Global Reach
Mon, 13 Oct 2014 17:32:00 GMT
Forbes – The stronger dollar may not be a major blow to the stock market as a whole, but expect some of America's biggest and most global companies to take a hit.

Stronger Dollar A Headwind For Companies With Global Reach
Mon, 13 Oct 2014 17:32:00 GMT

Weekly Highlights: Tesla's Model D, Apple iPad Tease And More
Sat, 11 Oct 2014 15:01:38 GMT

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