Baidu (BIDU) Offering Possible 27.39% Return Over the Next 30 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $180.00 short call and a strike $190.00 long call offers a potential 27.39% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $180.00 by expiration. The full premium credit of $2.15 would be kept by the premium seller. The risk of $7.85 would be incurred if the stock rose above the $190.00 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 64.85 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

U.S. Investors in China’s Internet Companies Face Risks
Fri, 20 Jun 2014 06:38:40 GMT
Bloomberg – U.S. shareholders face “major risks” from investing in Chinese Internet companies such as Alibaba Group Holding Ltd. that use a variable interest entity, according to a U.S. congressional commission report. Risks are associated with VIEs because the structures create holding companies to link foreign investors to Chinese firms via a set of complex legal contracts, according to the June 18 report by the U.S.- China Economic and Security Review Commission. Alibaba, now preparing for what could be the largest ever initial public offering in the U.S., would follow Chinese Internet companies Baidu Inc. (BIDU) and Weibo Corp. (WB) in securing a U.S. listing using the VIE structure.

All-star investor's global picks
Thu, 19 Jun 2014 18:29:00 GMT
CNBC – Justin Leverenz, Oppenheimer emerging markets equities director, shares his firm's top pick right now.

China ‘most durable growth story': Fund pro
Thu, 19 Jun 2014 18:00:35 GMT
CNBC – Forget the critics, China is still the best investment opportunity globally, according to a prominent developing markets mutual fund manager.

Baidu Is Winning Some Unlikely Battles
Thu, 19 Jun 2014 14:02:02 GMT
Motley Fool – Baidu is coming out on top in new categories.

Baidu Antivirus Ranks First Place in AV-Comparatives' Performance Test, Receives Advanced+ Award
Tue, 17 Jun 2014 13:47:48 GMT
Marketwired – Baidu , the world's leading Chinese search engine and developer of award-winning PC, Web and mobile products, has announced that its PC software Baidu Antivirus ranked first place in AV-Comparatives' May …

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