IBM (IBM) Offering Possible 12.87% Return Over the Next 25 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 12.87% return on risk over the next 25 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 $1.14 would be kept by the premium seller. The risk of $8.86 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 45.15 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

China is a driver, not a drag, for U.S. earnings in first quarter
Tue, 22 Apr 2014 22:05:52 GMT

IBM's Steady Recovery Continues
Tue, 22 Apr 2014 19:58:00 GMT
Motley Fool – Investors should keep in mind that IBM's recovery will take more time. However, a path to future growth is clear.

Eco-investing for ‘green' returns
Tue, 22 Apr 2014 19:39:00 GMT

IBM's Watson Could Be Your Next Shopping Partner
Tue, 22 Apr 2014 19:35:00 GMT
Entrepreneur – Cognitive, artificial intelligence is moving into e-commerce.

IBM’s Earnings Confirmed 1 Thing
Tue, 22 Apr 2014 15:53:56 GMT

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