IBM has been pulled back form 184 for almost 30$. After the news of Buffet reduce 1/3 of his position, IBM gap down but start to bounce back. RSI and CMO both showed oversold signal. I would like to set up this position long IBM.
Position: Credit Put Spread: -1x, June 150/140, Premium: 1.2$ Break Even: 148.8$ PoP%: 75% Target: 50% of the premium.
In case IBM continue going down, I am ready to be exercised and get IBM stocks with $148.8 per share.