10/10/2013

International Business Machines            NYSE: IBM

IBM is trading down about 23% from its HI’s set at 215.82

Former Support Trend now Resistance Trend 190

Slightly Bearish below 180 levels

Technical support 160 area

Technical Resist              187.25 - 188**                193 - 194***

Open Int. (est.)                    strike              October Monthly (10)

175                                  9,900

180                                11,500

185                                17,500

190                                19,900

195                                15,100

200                                12,200

205                                  5,700

210                                  5,500

215                                  2,500

October Monthly IP 35%   

Average daily volume 3,500,000/50 Day Moving Avg.

  If you were able to buy the October Monthly 180c/190c/195c/205c Call Condor +1/-1/-1/+1 for 1.75 or better before the week this weekends and sell after earnings release on Monday, or, if not risk is only $150 - $175 with break even’s set at 181.75 and 203.25 and maximum profit of $825 - $850 between 190 and 195.  

 The play is earnings so if the stock drops the risk is limited if the stock runs, the stock is down 17% from its hi of 216 so on a good release the stock could pop 10 - 15% just on a short cover rally With 182 roughly 2% above of 10/08 LOW of 178.57 the trade offers a great risk/ reward scenario.

*Disclaimer: This is not a recommendation. All trading entails risk. Anyone employing any strategies and having limited knowledge of options trading should consult with a FINRA licensed professional.