Baidu Offering Possible 36.05% Return Over the Next 39 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 39 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 50.57 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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58.com Seeks Acquisitions With $300 Million War Chest
Tue, 14 Jan 2014 23:00:01 GMT
Bloomberg – 58.com Inc., the company that made the largest initial public offering in the U.S. among Chinese peers last year, will seek acquisition opportunities in China to boost local information services.

Facebook to share public data with Russia's Yandex
Tue, 14 Jan 2014 18:23:15 GMT
Financial Times – Facebook has signed a deal with Yandex to allow Russia's largest online search engine to display public data from Facebook users in a deal to strengthen the Russian company in the face of the growing dominance …

DU Speed Booster, Baidu's New Android App, Reaches Five Million Downloads in Just Four Months
Tue, 14 Jan 2014 18:12:16 GMT
Marketwired – Baidu , the world's leading Chinese search engine and developer of award-winning PC, Web and mobile products including the category-leading DU Battery Saver, today announced that its free Android app DU …

Even Alibaba, Baidu Are Chipping Away Chinese Banks' Businesses
Tue, 14 Jan 2014 15:38:00 GMT
Barrons.com – Even Chinese Internet companies are chipping away the banks' fat profits. Bloomberg has the details: Moving money around with a smartphone to earn higher returns has become so popular in China that Yu'E …

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