IBM (IBM) Offering Possible 12.49% Return Over the Next 36 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 12.49% return on risk over the next 36 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 $1.11 would be kept by the premium seller. The risk of $8.89 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 34.52 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

10 Things In Tech You Need To Know This Morning
Mon, 20 Oct 2014 07:22:05 GMT

IBM Media Advisory
Mon, 20 Oct 2014 06:00:00 GMT

[$$] Globalfoundries to Take Over IBM Chip Unit
Mon, 20 Oct 2014 05:32:52 GMT
The Wall Street Journal – IBM will pay Globalfoundries $1.5 billion to take over IBM’s semiconductor operations.

IBM to pay $1.5B to offload chip arm: WSJ
Mon, 20 Oct 2014 05:32:26 GMT
CNBC – IBM (NYSE: IBM) is to hive off its loss-making semiconductor unit to contract-chipmaker Globalfoundries, The Wall Street Journal reports. The U.S. tech giant will pay Globalfoundries $1.5 billion to take …

IBM To Pay $1.5B To Shed Chip Making Unit, Asia Semis Shrug
Mon, 20 Oct 2014 04:55:00 GMT

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