Baidu (BIDU) Offering Possible 14.81% Return Over the Next 38 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $200.00 short call and a strike $220.00 long call offers a potential 14.81% return on risk over the next 38 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $200.00 by expiration. The full premium credit of $2.58 would be kept by the premium seller. The risk of $17.42 would be incurred if the stock rose above the $220.00 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 29.41 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

China's Baidu sacks eight in criminal investigation
Tue, 12 May 2015 11:50:38 GMT
Reuters – China's dominant Internet search engine Baidu Inc has fired eight executives accused of criminal behaviour, according to an internal memo seen by Reuters on Tuesday, as the company strives to keep its reputation clean. A Baidu spokesman confirmed the authenticity of the company memo, but declined further comment. Chinese President Xi Jinping has overseen a sweeping crackdown on corruption, including in the corporate sector, since becoming state leader in 2013, vowing to go after powerful “tigers” as well as lowly “flies”. Those sacked at Baidu include senior executives in the sales and marketing department, the memo said.

Baidu Vs. Google: How Are They Different?
Tue, 12 May 2015 10:01:00 GMT
Investopedia – Both Baidu and Google are known internet giants controlling significant online search business in their respective markets.

Baidu Leads in Artificial Intelligence Benchmark
Tue, 12 May 2015 04:02:08 GMT
The Wall Street Journal – Baidu Inc. says it has posted the world's best results on a closely watched artificial intelligence benchmark. It had a secret weapon, according to researchers at the Chinese search giant: Minwa.

China?s Baidu probing own execs for graft: company
Mon, 11 May 2015 06:33:49 GMT

China?s Baidu probing own execs for graft: company
Sun, 10 May 2015 20:33:49 GMT
AFP – Chinese search engine giant Baidu — often described as the country's equivalent of Google — said Monday it has launched anti-corruption investigations into its own employees after reports three department heads were being probed. Baidu did not reveal any details of its inquiries, nor confirm how many were being investigated or their names. “Internal anti-corruption action creates a just and transparent working environment, and a sound environment for workers' development,” the company said in a statement to AFP. Chinese Internet portal Sina reported Monday that Baidu was investigating three departmental directors.

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