Baidu Offering Possible 36.05% Return Over the Next 37 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 36.05% return on risk over the next 37 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 $2.65 would be kept by the premium seller. The risk of $7.35 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 55.75 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

Chinese Use Mobile Apps to Move Savings Into Money-Market Funds
Thu, 16 Jan 2014 23:06:39 GMT
BusinessWeek – China's banks are losing their grip on the nation's household deposits

LinkedIn Hires First President Of China Operations
Thu, 16 Jan 2014 20:13:00 GMT
Investor's Business Daily – LinkedIn Hires First President Of China Operations

February 14th Options Now Available For Baidu (BIDU)
Thu, 16 Jan 2014 16:23:00 GMT
TheStreet – Investors in Baidu, Inc. saw new options begin trading today, for the February 14th expiration.

1 Key Difference Between Mobile Search in China and America
Thu, 16 Jan 2014 16:01:57 GMT
Motley Fool – Baidu, and other Chinese search engines, have an opportunity unavailable to U.S. companies.

Tencent Shares Gallop Lifting Pony Ma to China’s Richest
Thu, 16 Jan 2014 09:47:46 GMT
Bloomberg – Ma Huateng, chairman of Tencent Holdings Ltd., became China’s richest man after shares in the Internet messaging company he co-founded leaped to a record.

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