IBM (IBM) Offering Possible 10.99% Return Over the Next 30 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 10.99% return on risk over the next 30 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 $0.99 would be kept by the premium seller. The risk of $9.01 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 33.33 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

HP to eliminate another 11,000 to 16,000 jobs
Thu, 22 May 2014 23:24:07 GMT

Sam Palmisano: How 3-D Printing Will Revolutionize Emerging Markets
Thu, 22 May 2014 22:20:30 GMT
TheStreet – Former IBM CEO Sam Palmisano explains how new technologies can revolutionize emerging markets, citing the specific example of 3-D printing.

HP may cut up to 16,000 more jobs as results disappoint
Thu, 22 May 2014 21:22:15 GMT
Reuters – Hewlett-Packard Co (HPQ.N) plans to cut as many as 16,000 more jobs in a major ramp-up of CEO Meg Whitman's years-long effort to turn around the personal computer maker and relieve pressure on its profit margins. The Silicon Valley company is trying to reduce its reliance on PCs and move toward computing equipment and networking gear for enterprises, part of Whitman's effort to curtail revenue declines and return the world's No. 1 PC maker to growth. On Thursday, the company posted a bigger-than-expected 1 percent drop in quarterly revenue, as it struggled to maintain its grip on the shrinking personal computer market while protecting profit margins. That quarterly revenue decline was the 11th consecutive one for HP.

Is IBM To Blame For This Company's Weak Sales?
Thu, 22 May 2014 17:08:15 GMT

Legacy IT makers IBM, EMC and others deal with, um, interesting times
Thu, 22 May 2014 16:48:32 GMT

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