Baidu (BIDU) Offering Possible 38.89% Return Over the Next 23 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 38.89% return on risk over the next 23 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 $1.40 would be kept by the premium seller. The risk of $3.60 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 47.03 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

Alibaba rivals team up on China ecommerce
Fri, 29 Aug 2014 06:49:39 GMT
Financial Times – Chinese real estate conglomerate Dalian Wanda is teaming up with two of China's largest internet companies in an $814m ecommerce joint venture aimed at loosening Alibaba's stranglehold on the country's …

Interview: Inside Google Brain Founder Andrew Ng's Plans To Transform Baidu
Thu, 28 Aug 2014 23:09:00 GMT
Forbes – Video Little known outside China, the Chinese search engine Baidu scored a coup earlier this year when it hired Andrew Ng to be chief scientist and open a new artificial intelligence lab in Silicon Valley. Ng, a Stanford computer science professor who headed the Google Brain AI project and then cofounded […]

[$$] China's Dalian Wanda Group Plans E-Commerce Venture With Tencent, Baidu
Thu, 28 Aug 2014 18:33:30 GMT
The Wall Street Journal – China's Dalian Wanda Group plans to launch an $813 million e-commerce joint venture with Internet companies Baidu and Tencent.

[$$] China Leads Asian Shares Lower
Thu, 28 Aug 2014 09:52:48 GMT
The Wall Street Journal – Chinese stocks were some of the worst performers in Asia on Thursday, with benchmarks in Hong Kong and Shanghai giving up early gains to close lower.

Markets Little Changed In Low Volume And Slow News Ahead Of Long Weekend
Wed, 27 Aug 2014 21:17:30 GMT

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