Baidu (BIDU) Offering Possible 50.6% Return Over the Next 16 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $217.50 short call and a strike $222.50 long call offers a potential 50.6% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $217.50 by expiration. The full premium credit of $1.68 would be kept by the premium seller. The risk of $3.32 would be incurred if the stock rose above the $222.50 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 47.54 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

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Tue, 23 Sep 2014 14:00:00 GMT
Marketwired – Baidu , the world's leading Chinese search engine and developer of award-winning PC, Web and mobile products, today announced that its popular PC optimization software Baidu PC Faster has surpassed 70 …

10:00 am Baidu.com announced that its PC optimization software Baidu PC Faster has surpassed 70 mln downloads worldwide
Tue, 23 Sep 2014 14:00:00 GMT

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