Baidu (BIDU) Offering Possible 42.86% Return Over the Next 14 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 42.86% return on risk over the next 14 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 $1.50 would be kept by the premium seller. The risk of $3.50 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 51.21 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 Is Worth Only $72?
Fri, 06 Feb 2015 07:05:00 GMT

Baidu Q4 Preview: Margin Could Be Pressured
Fri, 06 Feb 2015 04:43:00 GMT
Barrons.com – Baidu (BIDU) will report fourth-quarter earnings next Wednesday after U.S. market close. Wall Street expects Baidu's revenue to grow by 48% from a year ago to 14.1 billion yuan and its non-GAAP operating income to rise by 28% to 3.5 billion yuan. Investors will be watching Baidu's margins. As of the end of 2014, according to China Internet Network Information Center, Baidu's PC search product had a dominant utilization of 92%, compared to Sohu.com's (SOHU) 46% and Qihoo 360's (QIHU) 39%.

Why China's Baidu Shares Could Increase by 30% or More in 2015
Thu, 05 Feb 2015 16:13:00 GMT
TheStreet – China's burgeoning internet population and internet economy, combined with Baidu's valuations make it an investment worth considering in 2015.

China Internet: Alibaba, Baidu, Youku — Pacific Crest Takeaways
Thu, 05 Feb 2015 04:45:00 GMT

China Internet Use Rises On Mobile Payments, Travel
Tue, 03 Feb 2015 18:02:00 GMT
Investor's Business Daily – China expanded its lead as the No. 1 Internet market, with its number of online users rising 5% in 2014 to 649 million, according to the China Internet Network Information Center. The nation's Internet …

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