Baidu (BIDU) Offering Possible 20.85% Return Over the Next 29 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 20.85% return on risk over the next 29 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 $3.45 would be kept by the premium seller. The risk of $16.55 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 73.49 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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Tue, 15 Aug 2017 15:00:00 +0000
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Mon, 14 Aug 2017 13:36:51 +0000
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Alibaba, Baidu, JD.com: Moody's Wary on Finance Operations
Mon, 14 Aug 2017 08:25:00 +0000
China's internet stocks may be running hot but Moody's Investors Service has sounded a note of caution on the growth in their finance operations. While finance operations provide consumers with the funds to buy products, Moody's says credit quality can be affected as they are funded by debt and don't generate meaningful profits. Alibaba (BABA) – which operates Ant Financial – is viewed as being less exposed to risks from its finance operations: Ant Financial Group (AFG) has limited impact on Alibaba's credit metrics and ratings because it is not a consolidated entity, and it has become self-funded since 2014 through multiple rounds of third-party investment.

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