IBM (IBM) Offering Possible 16.01% Return Over the Next 23 Calendar Days

IBM's most recent trend suggests a bearish bias. One trading opportunity on IBM is a Bear Call Spread using a strike $185.00 short call and a strike $195.00 long call offers a potential 16.01% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $185.00 by expiration. The full premium credit of $1.38 would be kept by the premium seller. The risk of $8.62 would be incurred if the stock rose above the $195.00 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 26.08 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

What China's Distrust Means for IBM as the Nation Pulls the Plug
Fri, 27 Jun 2014 10:00:00 GMT
TheStreet – The Chinese government is reassessing whether financial and national security is being compromised by what it deems as an unacceptable reliance on IBM technology.

All-Flash Arrays Offer Strong Opportunity For NetApp Despite Competition
Thu, 26 Jun 2014 19:51:55 GMT
Seeking Alpha – At the end of 2012, NetApp ( NTAP ) was the third largest player in the all-flash storage array market behind Violin Memory and IBM ( IBM ), according to Gartner. [1] Rival EMC ( EMC ) launched the XtremIO …

Accenture trims profit forecast as margins come under pressure
Thu, 26 Jun 2014 17:13:05 GMT
Reuters – By Lehar Maan and Abhirup Roy (Reuters) – Accenture Plc, a consulting and outsourcing services provider, cut the top end of its full-year earnings forecast as margins come under pressure, taking the shine …

[$$] VMware to Rattle Skeletons in Storage Closet
Thu, 26 Jun 2014 14:52:00 GMT
Barrons.com – Credit Suisse The Credit Suisse software team published a major research report concluding that by leveraging its commanding competitive position at the hypervisor level, VMware is uniquely positioned to be a dominant vendor in the burgeoning software-defined-storage market. Given this, VMware (VMW) can evolve vSphere into a platform for storage management since Virtual SAN (VSAN) and Virtual Volumes (VVOLs) are built into the kernel of the company's hypervisor.

Accenture Outsourcing Unit Leads Q3 Earnings Beat
Thu, 26 Jun 2014 14:05:00 GMT
Investor's Business Daily – Accenture (ACN) leveraged growth in its consulting and IT outsourcing businesses to report fiscal Q3 earnings and sales early Thursday that topped Wall Street expectations, as did its earnings guidance …

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