Baidu Offering Possible 27.39% Return Over the Next 18 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $165.00 short call and a strike $175.00 long call offers a potential 27.39% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $165.00 by expiration. The full premium credit of $2.15 would be kept by the premium seller. The risk of $7.85 would be incurred if the stock rose above the $175.00 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 below 20 which suggests that the stock is in oversold territory.

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

Updating My Outlook For Baidu
Tue, 04 Feb 2014 17:59:41 GMT
Seeking Alpha – Since my previous mention of Baidu Inc ( BIDU ) in a piece entitled “3 Reasons Baidu Is A Buy”, published April 22, 2013, shares are up more than 88%.

Baidu: What's Going On In The Group Buying And Financial Services Segment
Tue, 04 Feb 2014 13:13:23 GMT
Seeking Alpha – Last month, Baidu ( BIDU ) agreed to buy the remaining stake of Nuomi, a group-buying website, from RenRen ( RENN ) . The acquisition is expected to close in the first quarter of 2014, after which Nuomi …

Led By Mobile, Baidu Beats By More Than 40%
Mon, 03 Feb 2014 20:13:10 GMT
Seeking Alpha – “Hundreds and hundreds of times” – that is the meaning of Baidu ( BIDU ), one of the largest web service companies in China. Their name exhibits their persistence to achieve the highest quality …

More of Southeast Asia, less of China this week
Mon, 03 Feb 2014 00:35:33 GMT
CNBC – Political strife in Thailand, economic data out of Indonesia and a central bank meeting in Australia should take the spotlight in Asia this week.

8 must-read tech stories in China this week
Sun, 02 Feb 2014 03:12:17 GMT
Tech in Asia – It’s been a busy week in China as everyone hammered out their last-minute business before the start of Chinese New Year. Here’s the biggest stories from the past seven days. 1. Bitcoin exchange BTC China …

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