Baidu (BIDU) Offering Possible 17.92% Return Over the Next 33 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $240.00 short call and a strike $260.00 long call offers a potential 17.92% return on risk over the next 33 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $240.00 by expiration. The full premium credit of $3.04 would be kept by the premium seller. The risk of $16.96 would be incurred if the stock rose above the $260.00 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 26.81 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

Chinese Companies To Grab Over 10% Of Online Ad Market This Year
Tue, 16 Dec 2014 06:42:00 GMT
Forbes – Chinese companies led by Alibaba and Baidu will grab 10% of the worldwide online advertising market, taking the No. 3 and No. 4 spots behind Google and Facebook.

Long-Term Opportunity in Baidu, Alibaba, Cheung Says
Tue, 16 Dec 2014 03:32:06 GMT
Bloomberg – Dec. 16 (Bloomberg) — Francis Cheung, head of China and Hong Kong strategy at CLSA, talks about People's Bank of China policy, China's economy and stock market. He speaks with Rishaad Salamat on Bloomberg …

Alibaba's Alipay Cites “12.12” E-Shopping “Tidal Wave”
Mon, 15 Dec 2014 18:13:00 GMT

Baidu: Uber not the best match
Mon, 15 Dec 2014 11:58:22 GMT
Financial Times – Do you bear an 87 per cent resemblance to Hugh Grant? Maybe you look 85 per cent like Sienna Miller. Facial recognition software in Baidu's mobile app can scan your face and give you your closest celebrity …

Chinese internet giant Baidu to invest 600M dollars in ‘under fire' Uber
Sat, 13 Dec 2014 07:35:37 GMT

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