IBM (IBM) Offering Possible 45.74% Return Over the Next 16 Calendar Days

IBM's most recent trend suggests a bearish bias. One trading opportunity on IBM is a Bear Call Spread using a strike $146.00 short call and a strike $152.50 long call offers a potential 45.74% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $146.00 by expiration. The full premium credit of $2.04 would be kept by the premium seller. The risk of $4.46 would be incurred if the stock rose above the $152.50 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 31.7 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

Cloud Revenues See Sharper Gains
Mon, 30 Apr 2018 20:21:45 +0000
Combined revenue at large cloud-service firms has grown 51% over the past year to nearly $15 billion, Synergy Research Group says. The results are based on an analysis of quarterly earnings reported in recent weeks by Amazon.com Inc., Microsoft Corp., Google parent Alphabet Inc. International Business Machines Corp., and Alibaba Group Holding Ltd. The analysis includes reported revenue data from Infrastructure-as-a-Service, Platform-as-a-Service and hosted private cloud services.

Fact-Based Valuation: IBM Case Study
Mon, 30 Apr 2018 18:51:00 +0000
In our previous article in this Option Investing Case Study on IBM (article 1, article 2), we showed that we had invested in IBM by accepting downside price risk in return for a monetary premium. As investors interested in the value of companies, the only reason we would have been willing to accept downside price risk is if we thought IBM’s intrinsic value is at least the same and hopefully higher than the present market price of the stock. You can watch this video from our Office Hour session that explains our valuation framework in more detail.

3 Top Value Stocks to Buy Right Now
Mon, 30 Apr 2018 18:35:00 +0000
There's no need to pay crazy prices for these solid companies.

Exxon Mobil Corporation Leads 6 Dividend Stocks Boosting Payouts
Mon, 30 Apr 2018 17:32:37 +0000
Rising bond yields and concerns over peaking earnings were enough to cause the S&P 500 Index to largely stagnate last week. However, a handful of leading businesses expressed optimism in the form of dividend boosts.

With A Major Digital Transformation In Place, SunTrust CIO Anil Cheriyan Exits
Mon, 30 Apr 2018 13:14:00 +0000
Anil Cheriyan just retired from SunTrust after a tremendous run over the past six years. He reflects on the significant digital transformation he led, the new roles he created, the value the company derived, and the future of the CIO role.

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