Bull & Bear: International Business Machines

Shares of International Business Machines Corporation IBM are trading higher on the session by 0.52%, at $171.43. With the recent run higher in shares, you have to wonder where they are heading next… Bulls: Bulls will note that International Business Machines Corporation is now poised to break to new highs; its current high is $173.54, only 1.23% high than the current trade. Bulls will also note that the 20-day, 50-day moving, and 200-day moving averages are all upward-sloping, indicating that the stock has been under accumulation. A bullish trader could buy the August $175/160 risk reversal (long call, short put) for a net debit of $0.97. Bears: Bears will note that the stock is heavily overbought and due for a pullback. International Business Machines Corporation has also been seeing an influx in put buying over the past two week. Technical bears will also note that the recent pop high and occurred on decreasing volume, which is a sign that conviction is low and longs are weak. A bearish trader could buy the August $170/160/150 put tree for a net debit of $2.02. International Business Machines Corporation is an information technology company. It operates under five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. GTS primarily provides IT infrastructure services and business process services.