IBM Offering Possible 7.07% Return Over the Next 25 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 7.07% return on risk over the next 25 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 $0.66 would be kept by the premium seller. The risk of $9.34 would be incurred if the stock rose above the $190.00 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 35.86 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

Buffett remains upbeat about IBM profit prospects, Bloomberg reports
Wed, 23 Oct 2013 11:20:31 GMT
theflyonthewall.com – Warren Buffett (BRK.A), who invested over $11B in IBM (IBM), said he’s confident in the computer-service provider’s prospects after the stock slumped last week, reports Bloomberg.

Following Warren Buffett Into IBM Could Be a Great Strategy
Wed, 23 Oct 2013 07:43:08 GMT
Motley Fool – Warren Buffett has made IBM the third-largest holding of Berkshire Hathaway. With the stock now “on sale” for 20% less than the all-time high it reached earlier this year, this could be a great …

IBM and Swiss Hospital Test New Tool for Diagnosing Cancer
Wed, 23 Oct 2013 04:01:00 GMT
PR Newswire – ZURICH , Oct. 23, 2013 /PRNewswire/ — IBM (NYSE: IBM ) scientists are collaborating with pathologists at the University Hospital Zurich to test a new prototype tool to accurately diagnose different types …

IBM and Oracle Should Rip These Pages From Apple's Playbook
Wed, 23 Oct 2013 00:02:34 GMT
Motley Fool – IBM and Oracle build great business tools, but often leave the experience a tangled mess for users and developers alike. In an exclusive interview with The Fool, TIBCO Software COO Murray Rode explains …

Buffett Praises IBM Profit Prospects After Share Slump
Tue, 22 Oct 2013 23:42:22 GMT
Bloomberg – Warren Buffett, who invested more than $11 billion in International Business Machines Corp., said he is confident in the computer-service provider’s prospects after the stock slumped last week.

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