IBM has had a rough go of it lately on earnings.  When I say a rough time, I am being nice.  Seven out of the last eight reports have resulted in down days and the one day it was not down…it was up a whopping $0.01!

The only thing is that the chart looks strong and tech has been mostly positive as of late.  We don’t want to play straight to the downside. 

If we can have our cake and eat it too, we will:

We put out the following strangle swap

​7-18-16: 

 Shorr_July_19.jpg

Based on our methodology a signal has been generated:

Sell (opening) the IBM July 22nd WE 152.5 strike put
Sell (opening) the IBM July 22nd WE 167.5 strike call
Buy (opening) the IBM August Regular Expiration 152.5 strike put
Buy (opening) the IBM August Regular Expiration 167.5 strike call 

For a DEBIT of $1.40 or less.  

This signal is not GTC, is a DAY ORDER ONLY and is valid with IBM trading $158 – $161.