Baidu (BIDU) Offering Possible 10.25% 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 $190.00 short call and a strike $200.00 long call offers a potential 10.25% 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 $190.00 by expiration. The full premium credit of $0.93 would be kept by the premium seller. The risk of $9.07 would be incurred if the stock rose above the $200.00 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 63.09 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

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Thu, 10 Jul 2014 15:17:00 GMT

Baidu Inc. Q2 Earnings Preview: What To Expect
Wed, 09 Jul 2014 18:32:01 GMT
Seeking Alpha – By Vikas Shukla Baidu Inc. (ADR) ( BIDU ) is scheduled to report its fiscal second-quarter results on Thursday, July 24. The Chinese Internet giant has registered solid growth in the past several quarters, …

Is Search Market Share a Serious Concern for Baidu, Inc?
Tue, 08 Jul 2014 22:02:21 GMT

Analyst Favors China Web Over Video
Tue, 08 Jul 2014 17:20:00 GMT
Barrons.com – Travel offers insights that reading alone cannot. And after a recent trip to China, Pacific Crest gained conviction on its favorite names: Baidu (BIDU), whose shares are down 4% today, Tencent Holdings …

Baidu Ad Spend Up, But Stock Down
Tue, 08 Jul 2014 14:48:00 GMT
Barrons.com – Conversations with Baidu's leading search agency partners suggests ad spending could exceed the company's 20% growth estimate for the second quarter, according to JG Capital. JG Capital Analyst Henry …

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