IBM Offering Possible 10.99% Return Over the Next 15 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 10.99% return on risk over the next 15 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 $0.99 would be kept by the premium seller. The risk of $9.01 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 23.84 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 mulling sale of semiconductor unit
Sat, 08 Feb 2014 06:55:38 GMT

IBM Said to Focus on Chip Joint Venture Amid Dim Sale Prospects
Fri, 07 Feb 2014 22:17:40 GMT
Bloomberg – International Business Machines Corp. (IBM) is focused on finding a joint-venture partner for its chip-manufacturing business after failing to attract a buyer for the division, two people with knowledge of the matter said. IBM already has a more limited development agreement with Globalfoundries Inc., which works with the company to make chips in New York state. Last month, the Armonk, New York-based company agreed to sell its low-end server business to Lenovo Group Ltd. (992) for $2.3 billion. IBM hired Goldman Sachs Group Inc. to explore possibilities for its chip business, another person familiar with the matter said.

Semiconductor sale a vital part of IBM's strategic realignment
Fri, 07 Feb 2014 19:09:07 GMT
Financial Times – When Lou Gerstner arrived at IBM in the depths of a financial crisis in 1993, the first outsider to be named chief executive in the company's century-long history faced an immediate choice: to break up …

IBM Leads 25% Rise in Bond Offerings in Rush to Beat Jobs Report
Fri, 07 Feb 2014 17:43:56 GMT
Bloomberg – International Business Machines Corp. (IBM) and BP Plc led a 25 percent jump in U.S. company bond sales this week as borrowers rushed to lock in yields at about a seven-month low before a labor report …

Where is the Growth in U.S. Companies?
Fri, 07 Feb 2014 16:53:55 GMT
Bloomberg – Feb. 7 (Bloomberg) — Former Verizon Wireless CEO Denny Strigl examines companies that need to reinvent and reinvest to continue growth. He speaks with Erik Schatzker on Bloomberg Television's “Market …

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