Baidu Offering Possible 6.95% Return Over the Next 9 Calendar Days

Baidu's most recent trend suggests a bearish bias. One trading opportunity on Baidu is a Bear Call Spread using a strike $185.00 short call and a strike $195.00 long call offers a potential 6.95% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $185.00 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $9.35 would be incurred if the stock rose above the $195.00 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

Stock Pops & Drops: BWLD, MCK, BIDU & MU
Thu, 09 Jan 2014 22:45:00 GMT
CNBC – The Fast Money traders take a look at today's biggest market movers.

Stocks Close Mixed As Some Leaders Slide
Thu, 09 Jan 2014 21:14:00 GMT
Investor's Business Daily – Stocks Close Mixed As Some Leaders Slide

Baidu rumored to plan independent literature brand, Marbridge Daily says
Thu, 09 Jan 2014 12:48:13 GMT
theflyonthewall.com – Baidu rumored to plan independent literature brand, Marbridge Daily says

Baidu in 2014: Can It Keep Rolling?
Wed, 08 Jan 2014 19:01:59 GMT
Motley Fool – Baidu gears up for an important year.

China Lifts Long-Time Game Console Ban; Who Will Benefit Other Than The Obvious?
Wed, 08 Jan 2014 17:23:00 GMT
Barrons.com – China lifted a 14-year ban on foreign game consoles earlier this week, allowing companies such as Microsoft (MSFT), Sony (SNE) and Nintendo to sell their products in the Shanghai Free Trade Zone. Obviously, …

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