IBM (IBM) Offering Possible 25% Return Over the Next 15 Calendar Days

IBM's most recent trend suggests a bearish bias. One trading opportunity on IBM is a Bear Call Spread using a strike $152.50 short call and a strike $157.50 long call offers a potential 25% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $152.50 by expiration. The full premium credit of $1.00 would be kept by the premium seller. The risk of $4.00 would be incurred if the stock rose above the $157.50 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 above 80 which suggests that the stock is in overbought 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

Charting the S&P 500’s jagged July breakout attempt ahead of the Fed
Tue, 30 Jul 2019 16:44:00 +0000
Technically speaking, the major U.S. benchmarks are concluding July on a bullish note, digesting potentially consequential breaks to record territory, writes Michael Ashbaugh.

3 of the Best AI Stocks to Buy Now
Tue, 30 Jul 2019 15:26:40 +0000
Investing for the future can be a difficult art to master. It requires that we find stocks that will have a long-term advantage from trends that are ongoing now. While artificial intelligence (AI) is a concept that has been around for decades, AI is only now starting become a tangible asset to business operations. That makes now an ideal time to seek and bet on AI stocks.Source: Shutterstock Today we examine IBM (NYSE:IBM), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). These are three companies that are already using AI, but more importantly, will continue to benefit from it at an exponential rate.Because of the impact of AI, I can own IBM, AMZN and GOOGL stock for the next decade.InvestorPlace – Stock Market News, Stock Advice & Trading TipsThis week, the stock markets are still near all-time highs with so much trepidation stemming from the political rhetoric. We are still awaiting the news from the Federal Reserve to see if they will cut rates and by how much.We also have activity along the negotiation efforts between the U.S. and China. The progress there is slow and unfruitful, so it's more likely to be a headwind than help to stocks.We are also in the middle of an earnings season with more mega caps ready to report. So the short-term moves in Amazon, Alphabet and IBM stock are likely to be more binary than fundamentally driven. * 10 Small-Cap Stocks to Buy Before They Grow Up With all of that in mind, here's more information about each of these hot AI stocks to buy now. IBM (IBM)Source: Shutterstock For decades, IBM has been the face of AI. I remember as a kid reading about a machine competing with humans in the game of chess. And even then, the concept of machines thinking on their own fascinated us.While it may sound simple, machine learning is a complicated process. We can program a machine to hone its skills in one task, but it is another thing to give it the initiative to teach itself a new skill to achieve its task without any human intervention.And that's where IBM shines. It has a giant head start on most other mega-cap companies in this area, so it is the AI stock to own.I would like it even more if it shook up its management ranks, but that will come with time if it continues to languish in bad earnings results. Its trend there has been very disappointing and eventually the equity markets will demand results or force a change. Nevertheless, I can accumulate a position in it for the years to come.Luckily IBM stock is cheap as it sells at a price-to-earnings ratio of 12 and pays a 4% dividend. Amazon (AMZN)Source: Shutterstock There is little that Amazon cannot do. It has dominated many industries and it keeps trying to find new ones to tap into. AI could be one of these areasBut what AMZN does better than finding new business to disrupt is to know when to quit and acquire the technology that is better than its own. So, I anticipate that AMZN will use AI even more to streamline its operations.This will have a tremendous impact on AMZN stock as it continues to flourish against many skeptics. Under the leadership of Jeff Bezos, AMZN has proven all its doubters wrong.The fundamentals in AMZN stock have improved tremendously over the years. It is now profitable while it continues to spend heavily to maintain its growth. So the fact that it sells at P/E of 80 is an asset, not a liability. Hyper growth companies like AMZN should spend a lot to grow. * 7 Stocks to Buy With Over 20% Upside From Current Levels Artificial intelligence and AMZN's voice technology Alexa are a marriage made in heaven. I bet that it will be on board many machines that run our daily lives in the years to come. Alphabet (GOOGL)Source: Shutterstock GOOGL is a behemoth in advertising but it also dabbles in other areas. One of those is the Autonomous driving space. Its subsidiary Waymo is the leader there and will likely be one of the first commercial providers of self driving cars to the masses.So from that perspective it's easy to see why it is a good idea to own GOOGL stock now for the next ten years. Self driving technology is all about artificial intelligence; it cannot exist without it as cars need to monitor and adjust to unpredictable variables every second. GOOGL is definitely an AI stockMeanwhile, this is a company that still dominates advertising, especially mobile. So while investors wait for the AI impact they have all the benefits of Alphabet's leadership now.The good news is that the price and value of GOOGL stock is humble. It is three times cheaper than AMZN. So buying GOOGL now is not likely to be a colossal financial disaster, especially if the goal is to own it for the long term.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Small-Cap Stocks to Buy Before They Grow Up * 7 Stocks to Buy With Over 20% Upside From Current Levels * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post 3 of the Best AI Stocks to Buy Now appeared first on InvestorPlace.

IBM Board Approves Regular Quarterly Cash Dividend
Tue, 30 Jul 2019 15:24:00 +0000
The IBM board of directors today declared a regular quarterly cash dividend of $1.62 per common share, payable September 10, 2019 to stockholders of record August 9, 2019.

IBM Vs. DXC: Go With Big Blue
Tue, 30 Jul 2019 15:07:00 +0000
An upside breakout is expected for IBM, and traders should go long around $150 risking below $145; Around $200 is our price target.

How to Play IBM Investor Day With Stock Options
Tue, 30 Jul 2019 09:30:00 +0000
International Business Machines will hold its investors day on Friday, but the options market isn’t priced for a big move. It could be very wrong.

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