IBM (IBM) Offering Possible 37.74% Return Over the Next 19 Calendar Days

IBM's most recent trend suggests a bearish bias. One trading opportunity on IBM is a Bear Call Spread using a strike $192.50 short call and a strike $197.50 long call offers a potential 37.74% return on risk over the next 19 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $192.50 by expiration. The full premium credit of $1.37 would be kept by the premium seller. The risk of $3.63 would be incurred if the stock rose above the $197.50 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 48.66 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

Dell: Confident of future in Asia
Tue, 30 Sep 2014 01:40:00 GMT

Tibco Software's Lack Of Cloud Kept Suitors Away
Mon, 29 Sep 2014 21:55:00 GMT

Lenovo-International Business Machines Corp. Deal Is ‘Nothing To Get Excited About'
Mon, 29 Sep 2014 19:10:59 GMT
Benzinga – Lenovo (OTC: LNVGY ) is about to close its acquisition of International Business Machines Corp.'s (NYSE: IBM ) low-end server business. The $2.1 billion deal is one of many that Lenovo has used to bolster …

Lenovo Buys IBM's Server Segment, Expansion Outside PC Next
Mon, 29 Sep 2014 18:59:30 GMT
TheStreet – Lenovo Group has received U.S. and European approvals to complete its acquisition of IBM's low-end server segment and plans to use it to grow faster outside its personal computer business.

USA TODAY Tech Person of the Quarter: Tim Cook
Mon, 29 Sep 2014 18:34:24 GMT

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