Baidu (BIDU) Offering Possible 41.84% Return Over the Next 31 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 $240.00 long call offers a potential 41.84% return on risk over the next 31 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 $2.95 would be kept by the premium seller. The risk of $7.05 would be incurred if the stock rose above the $240.00 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 26.22 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 confirms investment in ‘under fire' Uber
Thu, 18 Dec 2014 07:59:56 GMT

Uber Partners With Baidu. But Alibaba, Tencent Hard To Beat
Thu, 18 Dec 2014 03:51:00 GMT
Barrons.com – Uber and China's Google Baidu (BIDU) are now officially bedfellows. Baidu has agreed to invest in Uber and integrate its popular mobile mapping and search apps with Uber's services. This partnership could …

Baidu Confirms Taking Stake In Uber, Teams With Nokia
Wed, 17 Dec 2014 20:35:00 GMT
Investor's Business Daily – China search leader Baidu (BIDU) officially confirmed Wednesday that it had bought a stake in alternative taxi service Uber, as the San Francisco-based ride-summoning service strives to expand in China. …

Nasdaq movers: Tesla, Netflix & more
Wed, 17 Dec 2014 18:24:00 GMT

Uber Effect: VCs chasing the next ‘big' start-up
Wed, 17 Dec 2014 17:11:36 GMT

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