IBM Offering Possible 5.04% Return Over the Next 26 Calendar Days

IBM's most recent trend suggests a bullish bias. One trading opportunity on IBM is a Bull Put Spread using a strike $175.00 short put and a strike $165.00 long put offers a potential 5.04% return on risk over the next 26 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $175.00 by expiration. The full premium credit of $0.48 would be kept by the premium seller. The risk of $9.52 would be incurred if the stock dropped below the $165.00 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 64.54 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

[$$] Eike Batista's Adventure in Semiconductors
Tue, 24 Dec 2013 01:08:27 GMT
The Wall Street Journal – A plan to build semiconductor chips in Brazil falters after oil mogul Eike Batista runs into trouble.

11:01 am IBM receives patent for a breakthrough data encryption technique that is expected to further data privacy and strengthen cloud computing security
Mon, 23 Dec 2013 22:33:46 GMT
Briefing.com – 11:01 am IBM receives patent for a breakthrough data encryption technique that is expected to further data privacy and strengthen cloud computing security

Seagate For Xyratex: Brilliant Cloud Move, or Competitive Complication?
Mon, 23 Dec 2013 22:09:00 GMT
Barrons.com – Shares of hard-disk drive maker Seagate Technology (STX) closed up 35 cents, or 0.6%, at $56.01, after the company this morning said it would purchase Xyratex (XRTX) for $347 million in cash, net of cash …

Juniper Reiterated at Neutral
Mon, 23 Dec 2013 22:05:01 GMT
Zacks – We reiterate our Neutral recommendation on Juniper Networks Inc. post the announcement of third-quarter 2013 results.

Dow Today: International Business Machines (IBM) Leads The Day Higher, Boeing (BA) Lags
Mon, 23 Dec 2013 21:30:00 GMT
TheStreet – The Dow component that led the way higher today was International Business Machines (NYSE: IBM ), which sported a $2.21 gain (+1.2%) bringing the stock to $182.23. Holding the Dow back today was Boeing …

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