Baidu (BIDU) Offering Possible 42.05% Return Over the Next 25 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $220.00 short call and a strike $225.00 long call offers a potential 42.05% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $220.00 by expiration. The full premium credit of $1.48 would be kept by the premium seller. The risk of $3.52 would be incurred if the stock rose above the $225.00 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 52.09 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 Wanda, Tencent and Baidu team up for $813 million e-commerce deal – sources
Wed, 27 Aug 2014 08:42:38 GMT
Reuters – China's privately-held Dalian Wanda Group is set to launch a 5 billion yuan ($813 million) e-commerce joint venture with domestic internet giants Tencent Holdings Ltd and Baidu Inc, according to two sources familiar with the investment. The e-commerce venture, which will be 70 percent owned by Wanda and 15 percent held by Tencent and Baidu respectively, is set to be announced later this week, the people said. The venture will unite three of China's most powerful non-state companies. For Wanda, the tie-up with Tencent and Baidu opens the door to new opportunities in the world's biggest e-commerce market as the rise of smartphones creates new business opportunities.

China's Wanda, Tencent and Baidu team up for $813 million e-commerce deal-sources
Wed, 27 Aug 2014 05:56:28 GMT
Reuters – China's privately-held Dalian Wanda Group is set to launch a 5 billion yuan ($813 million) e-commerce joint venture with domestic internet giants Tencent Holdings Ltd and Baidu Inc, said two sources familiar with the investment. The e-commerce venture, which will be 70 percent owned by Wanda and 15 percent held by Tencent and Baidu respectively, is set to be announced later this week, the people said. The venture will unite three of China's most powerful non-state companies. For Wanda, the tie-up with Tencent and Baidu opens the door to new opportunities in the world's biggest e-commerce market as the rise of smartphones creates new business opportunities.

Leju Holdings Navigates China's Rising Housing Tumult
Tue, 26 Aug 2014 21:27:00 GMT
Investor's Business Daily – China-based Leju Holdings (LEJU) joined IBD's Top World Stocks list this week, buoyed by a strong advance following its June 20 quarterly report. The April IPO is facing some uncertainty because of declining …

Qihoo Faces Tougher Competition In Web Security
Tue, 26 Aug 2014 19:19:00 GMT

Qihoo Stock Falls As Expenses Rise, But Q2 Beats
Mon, 25 Aug 2014 17:26:00 GMT
Investor's Business Daily – Shares for Qihoo 360 Technology (QIHU), China's No. 2 search provider, fell Monday after the company reported Q2 operating profit margins that were lower due to increased spending. QIHU stock was down …

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