Intermediate Trade: IBM

The Trade: buy 1 IBM May $190 call and sell 1 IBM May $195 call for a debit of $0.95 per spread.

International Business Machines (IBM) has, over the past 52 weeks, traded between $138 and $183. IBM trades at a current PE of 15. However, its earnings are finally, after more than a few years, once again growing. If this earnings growth becomes a solid trend, it could cause the market to increase both IBM's forward PE ratio as well as its stock price....193 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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