We hold a January 90 call that was purchased for 2.34 last week with IBM plummeting. Let’s be a little ambitious, if not quite greedy, by offering a single December 90 call short against it for 1.80, good-till-canceled. If this order fills we’ll have legged into a nearly riskless calendar spread that could pay for your subscription. I’ve included a snapshot of an option calculator that tells why Big Blue would need to reach $88 (or so) by Friday to get our order done. From a Hidden Pivot perspective, IBM looks capable of 88.21 over the near term. However, to get there the stock would first need to move decisively above the target’s sibling midpoint, 81.76.
