Baidu (BIDU) Offering Possible 17.65% Return Over the Next 18 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $170.00 short call and a strike $180.00 long call offers a potential 17.65% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $170.00 by expiration. The full premium credit of $1.50 would be kept by the premium seller. The risk of $8.50 would be incurred if the stock rose above the $180.00 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 63.52 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

Baidu Announces Proposed Debt Offering
Tue, 03 Jun 2014 20:30:00 GMT
PR Newswire – BEIJING, June 3, 2014 /PRNewswire/ — Baidu, Inc. (BIDU) (“Baidu” or the “Company”), the leading Chinese language Internet search provider, today announced that it has filed a preliminary prospectus supplement with the United States Securities and Exchange Commission (the “SEC”) under an automatic shelf registration statement on Form F-3, pursuant to which the Company proposes to sell senior notes. The Company intends to use the net proceeds from the offering for general corporate purposes.

4:30 pm Baidu.com announces proposed debt offering
Tue, 03 Jun 2014 20:30:00 GMT

Cohen’s Point72 Asset Management increases its position in Baidu
Tue, 03 Jun 2014 13:00:03 GMT

Baidu Plans IPO For Its Video Business
Mon, 02 Jun 2014 19:19:31 GMT
Seeking Alpha – Baidu's ( BIDU ) iQiyi unit, a provider of online video steaming services in China, has plans to raise funds via an initial public offering (IPO) in the next three years. iQiyi’s CEO, Gong Yu, said during …

Qihoo, SouFun Fall Despite Good News From Beijing
Fri, 30 May 2014 22:14:00 GMT
Investor's Business Daily – Qihoo 360 Technology (QIHU) and other leading Chinese stocks dropped dramatically Friday even as reports surfaced that Beijing is lowering reserve ratios for banks. The State Council announced Friday that …

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