IBM Offering Possible 7.64% Return Over the Next 38 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 7.64% return on risk over the next 38 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 $0.71 would be kept by the premium seller. The risk of $9.29 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 65.68 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

IBM Makes an Acquisition
Thu, 14 Nov 2013 00:10:08 GMT
Motley Fool – The company agrees to purchase mobile management and security specialist Fiberlink Communications.

The Market Is Expensive, but These Stocks Aren't
Thu, 14 Nov 2013 00:02:43 GMT
Motley Fool – While valuations reach highs, investors might be more comfortable investing in these two potential buying opportunities.

IBM Buys Fiberlink: One Of The First Tech Companies To Help Enterprises With Google Glass
Wed, 13 Nov 2013 23:01:43 GMT
Business Insider – IBM today bought FiberLink Communication, a…

Amazon Web Services Chief Fires Back at IBM
Wed, 13 Nov 2013 20:09:09 GMT
The Wall Street Journal – An Amazon executive fired back at IBM–which is running a marketing campaign targeting the online retailer's cloud computing business–marking the latest salvo in a growing war of words between the two …

Dow continues retreat from all-time high
Wed, 13 Nov 2013 17:31:52 GMT
MarketWatch – The stock market continues its lackluster week, as traders await Thursday's confirmation hearing for Janet Yellen. Jim Kee, president and chief economist of South Texas Money Management, doesn't expect …

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