Baidu Offering Possible 32.63% Return Over the Next 25 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $180.00 short call and a strike $190.00 long call offers a potential 32.63% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $180.00 by expiration. The full premium credit of $2.46 would be kept by the premium seller. The risk of $7.54 would be incurred if the stock rose above the $190.00 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 70.59 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

Lackluster Wall Street dulls Asian shares
Wed, 26 Feb 2014 02:12:54 GMT

Will Baidu, Inc. (ADR) Earnings Keep Investors Satisfied?
Wed, 26 Feb 2014 01:04:01 GMT
Motley Fool – The Chinese online search giant's stock has soared, but will earnings keep up?

Baidu Keeps Getting Better
Wed, 26 Feb 2014 00:45:56 GMT
Motley Fool – Baidu gears up for its quarterly report tomorrow.

Google Acquires Spider.io
Tue, 25 Feb 2014 21:50:03 GMT
Zacks – Google Inc., the world's largest online search engine, has acquired an anti-malware company called Spider.io.

Baidu Q4 Search Seen Getting Mobile Gaming Boost
Tue, 25 Feb 2014 18:01:00 GMT
Investor's Business Daily – Chinese search leader Baidu (BIDU) is expected late Wednesday to report 3.9% Q4 earnings growth on accelerated revenue growth, as the company continues spending on mobile gaming and app stores. The firm's …

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