Baidu (BIDU) Offering Possible 49.25% Return Over the Next 24 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $172.50 short call and a strike $177.50 long call offers a potential 49.25% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $172.50 by expiration. The full premium credit of $1.65 would be kept by the premium seller. The risk of $3.35 would be incurred if the stock rose above the $177.50 long call strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Baidu is bullish and the probability of a rise 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 35.59 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

Does Baidu Stand a Chance in the Self-Driving Car Race?
Tue, 26 Jan 2016 00:51:02 GMT

Does Baidu Stand a Chance in the Self-Driving Car Race?
Tue, 26 Jan 2016 00:48:47 GMT
Bloomberg – David Kirkpatrick, Techonomy's chief executive officer, Bloomberg's Peter Elstrom discuss Baidu's self-driving car ambitions with Bloomberg's Emily Chang on “Bloomberg West.” (Source: Bloomberg)…

Alibaba Earnings Due Amid China Economy Concerns, Competitive Risks
Mon, 25 Jan 2016 21:59:25 GMT
Investor's Business Daily – The impact of competitive risks and a wobbly Chinese economy will be revealed when Alibaba (BABA) reports earnings before the market open Thursday. Alibaba stock has tumbled about 12% this month, during …

A New Player Is Entering The Driverless Car Race
Mon, 25 Jan 2016 19:54:51 GMT
Fortune – The market is getting a lot more competitive.

Core Technology Of Autonomous Cars Is A State Monopoly in China
Mon, 25 Jan 2016 16:45:00 GMT
Forbes – Photographer: Qilai Shen/Bloomberg Baidu Inc., often called China’s Google, is once more following in the footsteps of the real Google. Baidu has entered the field of self-driving cars. The company has been testing the technology for a while, as Bloomberg described yesterday. Late last year, a modified BMW 3-series with the telltale rotating “coffee-grinder”

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