Baidu (BIDU) Offering Possible 11.61% 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 $230.00 short call and a strike $250.00 long call offers a potential 11.61% 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 $230.00 by expiration. The full premium credit of $2.08 would be kept by the premium seller. The risk of $17.92 would be incurred if the stock rose above the $250.00 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 49.4 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

Herb Greenberg: Skeptical of Alibaba
Tue, 16 Sep 2014 20:17:00 GMT

Buy Baidu instead of Alibaba?
Tue, 16 Sep 2014 14:43:00 GMT
CNNMoney.com – Buy Baidu instead of Alibaba?

NetEase Eases To 10-Week Moving Average
Mon, 15 Sep 2014 22:09:00 GMT
Investor's Business Daily – Chinese leaders Baidu (BIDU), YY (YY), Vipshop (VIPS) and Weibo (WB) suffered hard hits Monday amid a sell-off in growth stocks. NetEase (NTES) also lost ground. The stock further pulled back after ending …

Cramer Answers Twitter Questions on Alibaba IPO, Yahoo! and Baidu
Mon, 15 Sep 2014 16:10:00 GMT

Stocks Stumble At Open; Mobileye Rebounds
Mon, 15 Sep 2014 14:26:00 GMT
Investor's Business Daily – Stocks stumbled in Monday's early going amid some mixed economic reports. The Nasdaq slumped 0.8% to its lowest level since Aug. 22. Biotech, solar and software were among the day's worst groups. The S&P …

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