IBM is going to announce quarterly earning on Jan 21 AMC. Expect some big move on Dow Jones Industrial and S&P500 when market opens on Jan 22 as IBM has very heavy weightage on these two indices.
There are a few trade ideas after the earning.
- Iron Condor: Sell Vega as IV percentile is high at 72.38%.
- Short Vertical Put Spread: IBM has broken out from a Double Bottoms and tested the neckline at about $185. This is a reversal pattern and IBM may start an uptrend if there is no shock news from earning announcement.
- Short Vertical Put Spread: If there is a gap down due to poor earning or poor outlook guidance, IBM will resume the down trend.
IBM Technical Analysis
IBM Implied Volatility
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Original post by Marubozu from My Stocks Investing Journey.