IBM (IBM) Offering Possible 39.28% Return Over the Next 18 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 39.28% return on risk over the next 18 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 $1.41 would be kept by the premium seller. The risk of $3.59 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 42.69 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

Lenovo Completes Initial Closing for Acquisition of IBM's x86 Server Business
Wed, 01 Oct 2014 04:20:00 GMT
PR Newswire – RESEARCH TRIANGLE PARK, N.C. and ARMONK, N.Y., Oct. 1, 2014 /PRNewswire/ — Lenovo (HKSE: 992) (ADR: LNVGY) and IBM (NYSE: IBM ) today announced that they have completed the initial closing for Lenovo's …

A Sharp Negative Reversal Often Flags A Good Stock's Top
Tue, 30 Sep 2014 22:00:00 GMT
Investor's Business Daily – When a stock hits a new high, it's human to respond to such news with joy. Yet it's a different story when that same stock does not finish the trading session at or near that new high. In fact, when a …

1:03 pm IBM: AmerisourceBergen (ABC) selects IBM to manage IT Infrastructure
Tue, 30 Sep 2014 17:03:00 GMT

AmerisourceBergen Selects IBM to Manage IT Infrastructure
Tue, 30 Sep 2014 17:00:00 GMT
PR Newswire – ARMONK, N.Y., Sept. 30, 2014 /PRNewswire/ — IBM (NYSE: IBM) today announced that it has extended, by three years, its multiyear services agreement with AmerisourceBergen, one of the largest global pharmaceutical sourcing and distribution services companies in the world. IBM will manage the IT infrastructure that supports the company's 13,000 employees and operations across 25 of its distribution centers in North America. Offering services ranging from drug distribution and niche premium logistics to reimbursement and pharmaceutical consulting services, AmerisourceBergen helps healthcare providers and pharmaceutical and biotech manufacturers improve patient access to their products. “Working with IBM provides us the capabilities we need to drive innovation in our business and to do so quickly and in the most cost effective way,” said Dale Danilewitz, Senior Vice President and Chief Information Officer, AmerisourceBergen.

How Will IBM (IBM) Stock Be Affected By This New Coverage?
Tue, 30 Sep 2014 14:25:00 GMT
TheStreet – IBM (IBM) shares had coverage initiated with a ‘buy' rating and $225 price target by analysts at CLSA on Tuesday.

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