IBM (IBM) Offering Possible 13.38% Return Over the Next 10 Calendar Days

IBM's most recent trend suggests a bullish bias. One trading opportunity on IBM is a Bull Put Spread using a strike $190.00 short put and a strike $180.00 long put offers a potential 13.38% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $190.00 by expiration. The full premium credit of $1.18 would be kept by the premium seller. The risk of $8.82 would be incurred if the stock dropped below the $180.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for IBM is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for IBM is bullish.

The RSI indicator is at 64.79 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

IBM: Look Past Soft Q1 to Risk-Reward Payoff, Says Stifel
Wed, 09 Apr 2014 21:40:00 GMT
Barrons.com – Stifel Nicolaus' David Grossman today reiterates a Buy rating on shares of International Business Machines (IBM), and a $220 price target, in advance of the company's Q1 financial report on April 16th, a week from today. Writes Grossman, the report will not be a “catalyst” for the stock, and he's modeling revenue of $22.8 billion and EPS of $2.52, below the consensus for $22.95 billion and $2.55 per share. IBM was probably doing more buybacks in the quarter as “insurance,” he thinks: We believe the 2014 EPS plan includes higher than average share repurchases (we think at least 6%) and that the company likely took out an insurance policy in 1Q with aggressive share repurchases, particularly given the relative weakness in share price subsequent to the 4Q EPS report in January (down to $175 range). But Grossman likes the potential for IBM's hardware business to become less of a drag by 2015: IBM was an underperformer year-to-date through mid-March and sentiment remains negative.

Masters Spots Will Tell IBM’s Story In a New Way
Wed, 09 Apr 2014 21:05:28 GMT
New York Times – The company is teeing up about 50 commercials that will run just once during the tournament, aimed primarily at so-called C-suite executives.

EMC CEO Joe Tucci Makes His Case For Hybrid Cloud Era
Wed, 09 Apr 2014 20:06:00 GMT

Dove Season: Fed Minutes Boost Stocks
Wed, 09 Apr 2014 19:04:00 GMT

These 4 Stocks Reflect Investor Activity as the Market Rotates
Wed, 09 Apr 2014 17:35:00 GMT

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.