Baidu (BIDU) Offering Possible 29.2% Return Over the Next 9 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $217.50 short call and a strike $222.50 long call offers a potential 29.2% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $217.50 by expiration. The full premium credit of $1.13 would be kept by the premium seller. The risk of $3.87 would be incurred if the stock rose above the $222.50 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 68.2 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

Ctrip Investment Gives Priceline Leg Up In China
Thu, 07 Aug 2014 17:56:00 GMT

Top 3 investment trends of the month
Thu, 07 Aug 2014 16:51:00 GMT

China imposes new restrictions on instant messaging tools – Xinhua
Thu, 07 Aug 2014 12:56:07 GMT
Reuters – China will force real-name registrations on public accounts of instant messaging tools and require those wishing to publish or reprint political news to seek prior approval, state media and Tencent Holdings Ltd said on Thursday. Last year, China launched a campaign to clamp down on online rumour mongering and ‘clean up' the internet. The crackdown has led to an exodus of users from Twitter-like microblog platforms such as Weibo Corp's Weibo after authorities detained hundreds of outspoken users. The latest restrictions will affect hugely popular mobile messaging apps such as Tencent's WeChat, which has almost 400 million users.

Priceline Buying Ctrip Stake In Big China Travel Bet
Wed, 06 Aug 2014 23:46:00 GMT

Qihoo 360 Closes $900 Million U.S. Note Offering
Wed, 06 Aug 2014 17:05:00 GMT
Investor's Business Daily – Qihoo 360 Technology announced the closing of its private placement of $900 million of convertible senior notes Wednesday. Qihoo 360 (QIHU), a Chinese Internet company, said that it sold the notes to qualified …

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