Baidu (BIDU) Offering Possible 25.94% Return Over the Next 24 Calendar Days

Baidu's most recent trend suggests a bullish bias. One trading opportunity on Baidu is a Bull Put Spread using a strike $150.00 short put and a strike $140.00 long put offers a potential 25.94% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $150.00 by expiration. The full premium credit of $2.06 would be kept by the premium seller. The risk of $7.94 would be incurred if the stock dropped below the $140.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Baidu is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Baidu is bullish.

The RSI indicator is at 49.04 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 Earnings Seen Falling As Mobile Drive Continues
Wed, 23 Apr 2014 17:32:00 GMT
Investor's Business Daily – Earnings at Chinese search leader Baidu (BIDU) are expected to slip in Q1, as the Beijing company continues to invest heavily in mobile technology and marketing. Earnings per share minus items is expected …

Baidu Antivirus Detects and Resolves Dangerous New WinRAR Vulnerability
Wed, 23 Apr 2014 17:22:04 GMT
Marketwired – Baidu , the world's leading Chinese search engine and developer of award-winning PC, Web and mobile products, today announced that its PC product Baidu Antivirus offers unique protection from a dangerous …

China’s soft landing: Is the Chinese economy on firm ground again?
Wed, 23 Apr 2014 17:00:05 GMT

A Ctrip, Qunar Marriage? Sensible But Unlikely, Says Barclays
Wed, 23 Apr 2014 16:44:00 GMT

Baidu: Q1 Rev May Beat, Watch Mobile Rev, Says Maxim
Wed, 23 Apr 2014 15:31:00 GMT
Barrons.com – Ahead of Baidu's (BIDU) earnings release tomorrow, Maxim Group analyst Echo He said Baidu's first quarter revenue may beat street consensus: Baidu will likely report revenues that top the consensus of $1,577.5M, which is higher than the high end of the guided range ($1,526M-$1,573M), representing more than 60% y/y growth. Maxim believes Baidu's revenue growth will be driven by price increases: We expect revenue per advertiser to increase 35%-40% y/y in 1Q14, vs. a 10%-15% increase in the number of advertisers. The price increase is likely driven by the overall increase of the internet ad budget and market inflation. Price increases should benefit BIDU's margins, partially offsetting the negative margin impact from investment in the mobile market and new products.

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