Baidu (BIDU) Offering Possible 11.98% Return Over the Next 10 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $220.00 short call and a strike $240.00 long call offers a potential 11.98% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $220.00 by expiration. The full premium credit of $2.14 would be kept by the premium seller. The risk of $17.86 would be incurred if the stock rose above the $240.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Baidu is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Baidu is bearish.

The RSI indicator is at 72.06 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Baidu

China imposes new restrictions on instant messaging tools – Xinhua
Thu, 07 Aug 2014 09:52:40 GMT
Reuters – By Paul Carsten BEIJING (Reuters) – China will force real-name registrations on users of instant messaging tools and require public accounts wishing to publish or reprint political news to seek prior approval, …

Priceline Buying Ctrip Stake In Big China Travel Bet
Wed, 06 Aug 2014 23:46:00 GMT

Qihoo 360 Closes $900 Million U.S. Note Offering
Wed, 06 Aug 2014 17:05:00 GMT
Investor's Business Daily – Qihoo 360 Technology announced the closing of its private placement of $900 million of convertible senior notes Wednesday. Qihoo 360 (QIHU), a Chinese Internet company, said that it sold the notes to qualified …

Why the Earnings Streak Will Continue for Baidu (BIDU)
Wed, 06 Aug 2014 10:37:00 GMT
Zacks – Baidu has seen a nice streak of beating earnings estimates at the previous two reports, suggesting it has a nice short-term history of crushing expectations and that it could be a great candidate for another …

Facebook, Baidu Lead 5 Young Fast-Growing Internets
Tue, 05 Aug 2014 23:59:00 GMT
Investor's Business Daily – Online upstarts can have a tremendous amount of growth potential. Today's Screen of the Day lands on Young Guns, a group of companies that have only gone public within the last 15 years. Baidu (BIDU) is …

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