IBM (IBM) Offering Possible 10.38% Return Over the Next 28 Calendar Days

IBM's most recent trend suggests a bearish bias. One trading opportunity on IBM is a Bear Call Spread using a strike $155.00 short call and a strike $165.00 long call offers a potential 10.38% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $155.00 by expiration. The full premium credit of $0.94 would be kept by the premium seller. The risk of $9.06 would be incurred if the stock rose above the $165.00 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 25.52 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

SAP Shares Near Record Highs as Customers Get on its Cloud
Fri, 21 Oct 2016 09:39:00 GMT
TheStreet – Strong demand for SAP S/4Hana software propels third-quarter revenue above forecasts and prompts the German group to lift its full-year profit estimate..

Macs are 3 times cheaper to own than Windows PCs, says IBM's IT guy
Thu, 20 Oct 2016 22:30:47 GMT

IBM: Wall Street Is Looking At The Wrong Numbers
Thu, 20 Oct 2016 21:46:00 GMT
Forbes – One of the rules of investing in publicly traded companies is that you cannot profit by looking into the past of these companies, but into their future. For a simple reason: market prices already reflect the past, but not the future. The problem is that emotional investors often forget this rule,

Microsoft surges, now what?
Thu, 20 Oct 2016 21:01:00 GMT

How to trade Microsoft Earnings: 4 plays
Thu, 20 Oct 2016 21:00:00 GMT

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