IBM Corporation (IBM) Bullish Option Play
IBM Corporation Long Call (NYSE: IBM)
TheOptionPlayer.com sets up an IBM Corp. (IBM) short-term (21-day) option strategy. Investors could simultaneously:
Buy IBM February 28th expiration 175 strike calls for approx $3.58 (mid-morning bid/ask mean)
Our target price is 182
We suggest a .35 trailing stop-loss
Why we recommend it:
This is technical play on IBM Corporation (IBM) stock as the price is bouncing off 52-week lows and moving higher. As highlighted in the chart, IBM shares turned upward after being oversold as a bullish move appears to have already begun. Also note how the Relative Strength Indicator (RSI) was grossly oversold and is turning up. Also the momentum indicator (MACD) signals bearish pressure is waning. At this point we are betting that buying IBM calls is a low-risk high-reward opportunity with a high probability of success by the end of the month.
52-Week High: 215.90
52-Week Low: 172.19
Average Volume (3 month) 5,245,530
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