IBM (IBM) Offering Possible 7.53% Return Over the Next 29 Calendar Days

IBM's most recent trend suggests a bullish bias. One trading opportunity on IBM is a Bull Put Spread using a strike $185.00 short put and a strike $175.00 long put offers a potential 7.53% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $185.00 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $9.30 would be incurred if the stock dropped below the $175.00 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 79.21 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for IBM

IBM: buying spree
Sun, 20 Jul 2014 16:27:30 GMT
Financial Times – They call IBM Big Blue. But actually, fewer than 1bn bits of it float around the stock market these days. IBM's share count dropped to 998m in the second quarter. Four and a half years ago, there were …

IBM – Shifting Focus From Repurchases To Operational Improvements Is To Be Applauded
Sun, 20 Jul 2014 10:33:16 GMT
Seeking Alpha – International Business Machines (NYSE: IBM ) reported its second quarter results on Thursday after the market close. The report, which by the way looks like it has been written on a traditional typewriter, …

IBM Extends Slump, Cheers Analysts
Sun, 20 Jul 2014 10:10:40 GMT
Seeking Alpha – By Jeffrey P. Snider The speed at which standards for judgment and analysis have eroded has been slow enough over the past few years as to be nearly imperceptible. There is, of course, a tremendous difference …

IBM: Turning Around But Overpriced
Sun, 20 Jul 2014 08:53:46 GMT
Seeking Alpha – After dropping about 1% in early trading, IBM (NYSE: IBM ) shares rallied throughout Friday to end the day virtually unchanged. It seems the longer that the market had to digest the company's quarterly …

IBM Stock Buybacks Reduce Share Count Below 1 Billion
Sat, 19 Jul 2014 18:00:33 GMT
Bloomberg – IBM shares are getting scarcer as the company acquires its outstanding stock, making each share of the company more valuable. International Business Machines Corp. (IBM) ’s repurchases reduced the company’s share count to 998 million at the end of June, the first time it’s closed a quarter below 1 billion since at least 1999, when it last split its stock. The company, led by Chief Executive Officer Ginni Rometty, spent $3.7 billion on buybacks in the three months starting in April. Fewer shares in circulation means more profit for each piece of stock, helping earnings per share go up even as the company’s revenue declines.

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