Baidu (BIDU) Offering Possible 51.52% Return Over the Next 15 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 51.52% return on risk over the next 15 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 $1.70 would be kept by the premium seller. The risk of $3.30 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 50.61 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, 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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Analysts Cut Alibaba Stock Estimates After Earnings
Fri, 30 Jan 2015 22:08:00 GMT
Investor's Business Daily – Several analysts lowered their price targets on Alibaba (BABA), a day after the China Internet giant reported fiscal third-quarter earnings that fell short. Alibaba beat earnings views, but its revenue's …

Google Mobile Growth Overcomes Q4 EPS, Revenue Miss
Fri, 30 Jan 2015 18:14:00 GMT
Investor's Business Daily – Google (GOOGL) stock rose Friday as investors and analysts focused on mobile growth at the search leader and not Q4 earnings and sales that missed expectations. In releasing its Q4 results late Thursday, …

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