IBM Offering Possible 8.58% Return Over the Next 39 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 8.58% return on risk over the next 39 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 $0.79 would be kept by the premium seller. The risk of $9.21 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 68.36 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

[$$] Meet the Man Who Really Runs the Internet
Wed, 13 Nov 2013 02:07:46 GMT
The Wall Street Journal – From Netflix's streaming video service to Pinterest's social network, much of the Internet runs under the watch of Andy Jassy, head of Amazon's Web Services division.

Oracle's HealthCare.gov quandary has deep implications
Wed, 13 Nov 2013 00:49:49 GMT
USA TODAY – The survival of Larry Ellison's Oracle is on the line, in fixing the flawed web site.

IBM Has No Cash Flow Problem At All
Tue, 12 Nov 2013 20:55:51 GMT
Seeking Alpha – A recent article on Seeking Alpha basically said that IBM ( IBM ) was a sale because cash flows were declining and the free cash flow yield was too small to justify the current stock price.

The Market Hates IBM But It's Getting Some Love Lately
Tue, 12 Nov 2013 19:29:00 GMT
Forbes – IBM could be considered the Dow's most hated stock right now because in addition to its downward trend in prices, it is trading at an earnings multiple well below average and sports a short ratio of over 4.5.

Stocks hit pause after big advance
Tue, 12 Nov 2013 18:21:50 GMT
MarketWatch – Stocks are pulling back as investors take a breather following the market's recent gains. President Tom Karsten of Karsten Advisors says the market is due for a pullback, noting there hasn't been a 10% …

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