IBM (IBM) Offering Possible 11.23% Return Over the Next 24 Calendar Days

IBM's most recent trend suggests a bearish bias. One trading opportunity on IBM is a Bear Call Spread using a strike $195.00 short call and a strike $205.00 long call offers a potential 11.23% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $195.00 by expiration. The full premium credit of $1.01 would be kept by the premium seller. The risk of $8.99 would be incurred if the stock rose above the $205.00 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 46.16 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

Buffett: moving oil by rail safely major industry concern
Thu, 24 Apr 2014 01:19:15 GMT

Buffett: moving oil by rail safely major industry concern
Thu, 24 Apr 2014 00:54:59 GMT

CNBC transcript: Warren Buffett on Coke pay plan
Wed, 23 Apr 2014 23:36:19 GMT

Warren Buffett Boosts IBM Stake, Calls Coca-Cola Equity Plan ‘Excessive'
Wed, 23 Apr 2014 19:43:00 GMT
TheStreet – Warren Buffett on Wednesday told CNBC he has increased his investment in IBM IBM and that he abstained from supporting a multi-year compensation plan floated by Coca-Cola in the soda giant's 2013 annual …

Warren Buffett: Stocks not too frothy
Wed, 23 Apr 2014 19:23:00 GMT
CNBC – CNBC's Becky Quick discusses Warren Buffett's feelings about the market.

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