Baidu (BIDU) Offering Possible 34.05% Return Over the Next 32 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $250.00 short call and a strike $260.00 long call offers a potential 34.05% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $250.00 by expiration. The full premium credit of $2.54 would be kept by the premium seller. The risk of $7.46 would be incurred if the stock rose above the $260.00 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 65.19 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

Xiaomi, Shunwei to Invest $300 Million in IQiyi for Video
Wed, 19 Nov 2014 08:45:14 GMT
Bloomberg – Xiaomi Corp., China’s largest smartphone vendor, and Shunwei Capital will invest $300 million in Baidu Inc. (BIDU) ’s IQiyi.com to increase access to online content as more people watch videos on mobile …

[$$] Xiaomi to Invest in Baidu Unit
Wed, 19 Nov 2014 07:31:16 GMT
The Wall Street Journal – Xiaomi Inc. and a related investment fund plan to invest $300 million in Baidu Inc.’s iQiyi arm, marking the smartphone maker’s second investment in China’s rapidly growing online-video market in recent …

Vipshop Leads 4 Top Stocks With Bolting RS Lines
Tue, 18 Nov 2014 13:02:00 GMT

Why Baidu And Alibaba Are JP Morgan's Top Picks
Tue, 18 Nov 2014 08:22:00 GMT

Stocks Rally Off Lows, Finish Mixed For The Day
Mon, 17 Nov 2014 22:11:00 GMT

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