Bull & Bear: International Business Machines (IBM)

Shares of International Business Machines IBM are lower on the session by 0.31%, currently trading at $167.76. With shares nearing a fresh 52-week high, you have to wonder where shares are heading next… Bull: Bulls will note the potential bull flag developing in shares, which could rockets shares of International Business Machines to new highs fairly quickly. Bulls will also note that the 20-day, 50-day, and 200-day moving averages are all uptrending. Despite the recent pullback in shares, they held strong at the 50-day moving average and have since rallied higher. This indicates very strong bull support. A bullish trader could buy the June $165 call for $5.20 and sell the June $175/160 strangle for a net credit of $2.69. Bears: Bears will note that shares are trading in overbought territory and are due for a technical pullback. Bears will also note the potential of a double-top forming if shares sell off from these levels. If a double-top were to form, a longer-term bear trend could be established. International Business Machines would then have to fight to hold onto the uptrending moving averages. A bearish trader could buy the July $165/155/145 put tree for a net debit of $1.97. International Business Machines Corporation is an information technology company. The company operates under five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing.