Baidu (BIDU) Offering Possible 21.65% Return Over the Next 9 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $225.00 short call and a strike $230.00 long call offers a potential 21.65% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $225.00 by expiration. The full premium credit of $0.89 would be kept by the premium seller. The risk of $4.11 would be incurred if the stock rose above the $230.00 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 54.63 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

Alibaba IPO: Jack Ma's scrappy start-up takes on U.S.
Fri, 12 Sep 2014 02:43:29 GMT

Baidu Computer Research Rockstar Building AI Lab
Wed, 10 Sep 2014 20:54:00 GMT
Investor's Business Daily – In 2011, pioneering artificial intelligence researcher Andrew Ng led the “Google Brain” initiative, which developed a sophisticated computer system that on its own learned to distinguish thousands …

Baidu Appoints Dr. Ya-Qin Zhang as President, New Business
Wed, 10 Sep 2014 02:12:00 GMT
PR Newswire – BEIJING, Sept. 9, 2014 /PRNewswire/ — Baidu (BIDU), the leading Chinese language Internet search provider, today announced the appointment of Dr. Ya-Qin Zhang as president, in charge of new business, effective immediately. Zhang will report to Robin Li, Baidu's chairman and chief executive officer. Prior to joining Baidu, Zhang served as Microsoft's corporate vice president and chairman of Microsoft's Asia R&D Group, leading overall research and development efforts in Asia-Pacific, the largest Microsoft R&D establishment outside of the United States with over 3,000 scientists and engineers.

Why Alibaba continues to smartly leverage key growth areas
Tue, 09 Sep 2014 13:00:11 GMT

[$$] Baidu Hires Top Microsoft Executive
Mon, 08 Sep 2014 05:27:03 GMT
The Wall Street Journal – Chinese search giant Baidu has lured away Zhang Yaqin, a top Microsoft executive in China, in the latest setback for the U.S.-based company there.

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