Put Spread on IBM on 10/21/2013

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide.

The company’s Global Technology Services segment provides IT infrastructure and business process services, including outsourcing, process, integrated technology, and technology support. Its Global Business Services segment offers consulting solutions for strategy and transformation, application innovation, enterprise applications, and smarter analytics; and application management, maintenance, and support services.

The company’s Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, performance management business analytics and intelligence, and data analytics; Tivoli software for cloud and datacenter management, enterprise endpoint and mobile device management, asset and facilities management, storage management, and security systems; Lotus Software to connect people and processes for communication; rational software to support software development in IT and embedded systems; and operating systems software.

Shares are in the process of forming a bearish "flag" following the company's poor quarterly earnings report and guidnace. Lower share prices are expected for this stock. 

52-Week Trading Range: $172.57 - $215.90

Last Trade: $174.19

Trade Buy 1 November $175.00 Put at $3.85 Sell 1 November $170.00 Put at $1.75 For a net debit of $2.10 Profit/Loss Analysis Breakeven at $172.90 Maximum profit is $290.00 at strike of $170.00 Maximum loss is ($210.00) at strike of $175.00 Closing Summary Sold 1 November $175.00 Put at $0.00 Bought 1 November $170.00 Put at $0.00

Position closed on 11/15/2013 at price of $0.00 with a -100.00% loss in 25 days.

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