IBM Offering Possible 14.03% 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 $180.00 short call and a strike $190.00 long call offers a potential 14.03% 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 $180.00 by expiration. The full premium credit of $1.23 would be kept by the premium seller. The risk of $8.77 would be incurred if the stock rose above the $190.00 long call 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 below 20 which suggests that the stock is in oversold territory.

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

Jim Cramer's ‘Mad Money' Recap: Making Money
Tue, 03 Dec 2013 01:10:00 GMT
TheStreet – Investing is about making money, not having a particular strategy, Cramer says.

Thanksgiving Weekend Retail Massacre: The Gift That Will Keep On Giving
Mon, 02 Dec 2013 23:43:00 GMT
Forbes – We have only just begun to see the impact of retail sales shortfalls over Thanksgiving weekend. Repercussions will be felt through the entire holiday season and beyond. Record sales on Cyber-Monday will do little to blunt the pain. Those Thanksgiving Day sales were very expensive. Why? Every sales dollar shortfall

Cramer: 2 dangerous stocks into year's end
Mon, 02 Dec 2013 23:30:04 GMT
CNBC – Jim Cramer said these two Dow stocks are to be avoided at all costs until the end of the year. Know why?

IBM: A History Of Adapting, Extinction Seems Unrealistic
Mon, 02 Dec 2013 20:33:12 GMT
Seeking Alpha – Recently Seeking Alpha author, Arne Alsin, published a letter about International Business Machines Corp. ( IBM ), which presents a bear case for the computer giant. Alsin wrote:

Cognizant's Frank D'Souza Is Aware Of What's Emerging
Mon, 02 Dec 2013 18:32:00 GMT
Investor's Business Daily – Cognizant's Frank D'Souza Is Aware Of What's Emerging

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