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inthemoneystock (< 20)

IBM Will Pull Back Here: Resistance Trend Line Alert



February 12, 2014 – Comments (1) | RELATED TICKERS: IBM

International Business Machines Corp. (NYSE:IBM) is slamming into a key level of resistance. This level is at $181.15. Based on this resistance level and multiple other factors, IBM is an easy short here for a multi-day pullback. A $177.00 target can be used. Enjoy and profit for life.

Gareth Soloway

1 Comments – Post Your Own

#1) On February 12, 2014 at 11:50 PM, BlueCollarTrade (34.43) wrote:

For Option traders, with a relative low implied volatility in IBM, use Calendar Spreads or Diagonal Spreads to capture this downside move.  

An example Calendar Spread,

Sell 1 Contract 175 FEB IBM Put

Buy 1 Contract 175 FEBW4 IBM Put

Debit = $26, the stock will make money if it trades between approx $170 and $179.   Max Profit at Expiration (Feb 21st), would be $117 for this $26 trade. 

Good Luck!   

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