Baidu Offering Possible 21.95% Return Over the Next 32 Calendar Days

Baidu's most recent trend suggests a bullish bias. One trading opportunity on Baidu is a Bull Put Spread using a strike $155.00 short put and a strike $145.00 long put offers a potential 21.95% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $155.00 by expiration. The full premium credit of $1.80 would be kept by the premium seller. The risk of $8.20 would be incurred if the stock dropped below the $145.00 long put 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 up which suggests that the medium-term momentum for Baidu is bullish.

The RSI indicator is at 47.46 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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First Week of February 2014 Options Trading For Baidu (BIDU)
Tue, 19 Nov 2013 16:52:00 GMT
Forbes – Investors in Baidu, Inc. (NASD: BIDU) saw new options become available this week, for the February 2014 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 95 days until expiration the newly available contracts […]

Huge Reforms in China Could Lead to Big Upside for Top Chinese Stocks
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24/7 Wall St. – Last Friday the Chinese government unveiled a 60-point reform plan designed to boost Chinese economic and social status to new levels. The agenda is an initiative to move China to a more free market economy. …

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The New Yorker – “We do not think that it is in anyone’s best interest for digital currency to become an offshore industry or an industry dominated by China,” said Jeremy Allaire, the founder of a startup called Circle …

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