Baidu Offering Possible 35.14% Return Over the Next 24 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 35.14% return on risk over the next 24 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 $2.60 would be kept by the premium seller. The risk of $7.40 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 at 30.39 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

Why Baidu Acquired Renren's Group-Buying Site
Wed, 29 Jan 2014 23:02:57 GMT
Motley Fool – Learn why Chinese giant Baidu is interested in making a similar service to Groupon in the second largest economy.

Qihoo Shaping A Long Base
Wed, 29 Jan 2014 23:01:00 GMT
Investor's Business Daily – Qihoo Shaping A Long Base

Alibaba coming-of-age deal for China: Pro
Wed, 29 Jan 2014 22:26:00 GMT
CNBC – Slamming the door on Chinese IPOs? David Chao, DCM co-founder and general partner, highly doubts the SEC's suspension from auditing ruling on Chinese units of the global “big four” accounting …

Baidu scrambles to monetise its mobile real estate
Wed, 29 Jan 2014 21:32:06 GMT
Reuters – China's Baidu Inc (NSQ:BIDU) knows where you are, where you're going and when you want dumplings, guiding you from web page to restaurant when you use its search engine. Now the biggest Chinese technology company traded in the United States needs to figure out how to make money when you use its mobile Internet services, a game it admits it came to late. Baidu's tactics to catch up to rivals include buying other businesses like the $1.9 billion purchase of 91 Wireless app store and the group-buying site Nuomi – think GroupOn Inc (GRPN.O) – which Baidu fully acquired last week after securing a 59 percent stake last August. “We have tried many ways to monetise…We haven't really got the answer yet,” said Wang Haifeng, chief scientist at Baidu.

Baidu scrambles to monetize its mobile real estate
Wed, 29 Jan 2014 21:07:36 GMT
Reuters – China's Baidu Inc knows where you are, where you're going and when you want dumplings, guiding you from web page to restaurant when you use its search engine. Now the biggest Chinese technology company traded in the United States needs to figure out how to make money when you use its mobile Internet services, a game it admits it came too late. Baidu's tactics to catch up to rivals include buying other businesses like the $1.9 billion purchase of 91 Wireless app store and the group-buying site Nuomi – think GroupOn Inc – which Baidu fully acquired last week after securing a 59 percent stake last August. “We have tried many ways to monetise…We haven't really got the answer yet,” said Wang Haifeng, chief scientist at Baidu.

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