IBM (IBM) Offering Possible 22.25% Return Over the Next 25 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 $185.00 long put offers a potential 22.25% return on risk over the next 25 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 $0.91 would be kept by the premium seller. The risk of $4.09 would be incurred if the stock dropped below the $185.00 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 71.69 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

Apple Stabs BlackBerry In The Heart
Wed, 23 Jul 2014 18:48:13 GMT

EMC CEO Tucci To Meet With Big Shareholder Elliott
Wed, 23 Jul 2014 15:34:00 GMT

For IBM Corp., Shortsightedness Rules the Day
Wed, 23 Jul 2014 15:28:06 GMT
Motley Fool – After posting outstanding earnings, analysts instead choose to focus on the negatives.

What freaks out Mr. Wonderful about Apple
Wed, 23 Jul 2014 15:08:00 GMT
CNBC – Investor Kevin O'Leary of “Shark Tank;” Roger McNamee, Elevation Partners co-founder; and the “Squawk Alley” crew, discuss Apple's earnings. McNamee says the IBM deal is key and explains …

Apple's Cook: ‘Best execution' since I took over
Wed, 23 Jul 2014 15:04:00 GMT
CNBC – CNBC's Josh Lipton spoke to Apple's CEO Tim Cook about earnings, tablets and margins. Cook said he was not concerned iPad sales. CNBC's John Fortt provides insight

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