Baidu (BIDU) Offering Possible 32.45% Return Over the Next 30 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $245.00 short call and a strike $255.00 long call offers a potential 32.45% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $245.00 by expiration. The full premium credit of $2.45 would be kept by the premium seller. The risk of $7.55 would be incurred if the stock rose above the $255.00 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 49.62 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

China’s Xiaomi to Invest in Baidu Online-Video Business
Thu, 20 Nov 2014 23:27:21 GMT
The Wall Street Journal – Xiaomi Inc. and a related investment fund plan to invest $300 million in Baidu Inc.’s iQiyi arm, marking the smartphone maker’s second investment in China’s rapidly growing online-video market in recent …

Tencent, Alibaba, Baidu, JD.com, Vipshop Favored: Meng
Thu, 20 Nov 2014 03:35:59 GMT
Bloomberg – Nov. 20 (Bloomberg) — Cynthia Meng, an analyst at Jefferies Group LLC, talks about China's Internet industry. China is hosting the World Internet Conference in Wuzhen this week. Meng speaks in Hong Kong …

LightInTheBox: ‘It's a huge world outside China'
Thu, 20 Nov 2014 01:38:00 GMT

Xiaomi, Shunwei to Invest $300 Million in IQiyi for Video
Wed, 19 Nov 2014 08:45:14 GMT
Bloomberg – Xiaomi Corp., China’s largest smartphone vendor, and Shunwei Capital will invest $300 million in Baidu Inc. (BIDU) ’s IQiyi.com to increase access to online content as more people watch videos on mobile …

Vipshop Leads 4 Top Stocks With Bolting RS Lines
Tue, 18 Nov 2014 13:02:00 GMT

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