Baidu (BIDU) Offering Possible 5.15% Return Over the Next 30 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 $240.00 long call offers a potential 5.15% return on risk over the next 30 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 $0.98 would be kept by the premium seller. The risk of $19.02 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 49.55 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

KKR, Baidu, Coatue to invest $170 mln in China online used-car platform
Wed, 18 Mar 2015 03:34:12 GMT
Reuters – Private equity firm KKR & Co LP, search engine Baidu Inc and hedge fund Coatue said on Wednesday they will jointly invest $170 million in Chinese online used-car auction firm Uxin, aiming for a piece of …

Qunar Stock Jumps On Q4 Beat, Mobile Growth
Tue, 17 Mar 2015 18:51:00 GMT

Uber Said to Merge with China’s Yidao Yongche: Report
Tue, 17 Mar 2015 17:05:57 GMT

5 Key Things Brean Analysts Are Watching At Baidu
Tue, 17 Mar 2015 14:27:48 GMT
Benzinga – In a report published Monday, Brean Capital analyst Fawne Jiang presented five key takeaways from a recent conference call with Baidu Inc's (NASDAQ: BIDU ) Director of Investor Relations Sharon Ng. “Baidu …

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