Baidu (BIDU) Offering Possible 58.73% 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 $167.50 short call and a strike $172.50 long call offers a potential 58.73% 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 $167.50 by expiration. The full premium credit of $1.85 would be kept by the premium seller. The risk of $3.15 would be incurred if the stock rose above the $172.50 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 39.93 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

4 Trade War Stocks to Sell as Tensions Escalate
Mon, 06 May 2019 18:30:37 +0000
Global equities are being smashed lower on Monday after President Trump — no doubt empowered by the S&P 500's run to a new record high on Friday — put the squeeze on Beijing by announcing Sunday in a series of tweets that trade talks weren't going so well after all. He threatened to raise tariffs on Chinese imports into the United States further on Friday.Suddenly, after months of teasing a trade deal, another round of escalations seems likely. In fact, the U.S. Navy recently sailed two destroyers through the South China Sea. North Korea, no doubt with Beijing's blessing, recently test-fired another ballistic missile. There is a geopolitical element to this that is worsening as well.As a result, markets look vulnerable to a significant pullback here as the post-December uptrend has grown overhyped — from Uber's upcoming IPO to a realization the Federal Reserve perhaps isn't as dovish as the bulls were hoping, with Chairman Jerome Powell wondering aloud whether inflation could soon surge higher.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 10 Lithium Stocks to Buy Despite the Market's Irrationality A number of large-cap stocks are feeling the pinch from the change of theme. Here are four trade war stocks to sell: Baidu (BIDU) Click to EnlargeShares of Chinese internet giant Baidu (NASDAQ:BIDU) are breaking down below a six-month consolidation range that marked a 40% decline from the highs set last year. The move puts the early 2016 lows near $140 in play, which would be a further 20% loss from here. The stock was recently downgraded by analysts at China Renaissance.The company will next report results on May 16 after the close. Analysts are looking for an earnings loss of 10 cents per share on revenues of $3.6 billion. When the company last reported on Feb. 21, earnings of $1.92 beat estimates by 11 cents on a 9.4% rise in revenues. JD.com (JD) Click to EnlargeChina internet retailer JD.com (NASDAQ:JD) is watching helplessly as its shares drop hard below their 50-day moving average, putting an end to a nice six-month uptrend and setting up a fall below its 200-day moving average. The stock had suffered a 60%+ decline from its early 2018 highs into the lows set late last year. A retest of those lows looks likely now, which would be worth a loss of nearly a third from here. * 7 Energy Stocks to Buy to Light Up Your Portfolio The company will next report results on May 10 before the bell. Analysts are looking for earnings of 12 cents per share on revenues of $17.8 billion. When the company last reported on Feb. 28, earnings of 51 cents per share beat estimates by 78 cents on a 22.4% rise in revenues. Weibo (WB) Click to EnlargeWeibo (NASDAQ:WB), China's Twitter (NYSE:TWTR) knockoff, created thanks to the communists' desire to control the flow of information online, has fallen back below its 200-day moving average after a short-lived attempt to challenge the late-February highs. This was the first move into uptrend territory since stocks lost more than half of their value falling away from the early 2018 record high.The company will report on June 4 before the bell. Analysts are looking for earnings of 51 cents per share on revenues of $401 million. When the company last reported on March 5, earnings of 80 cents per share beat estimates by 5 cents on a 27.7% rise in revenues. Boeing (BA) Click to EnlargeThings are going from bad to worse for Boeing (NYSE:BA), as its airplanes are a key strategic export from the United States to China at a time when the Chinese are rapidly developing their own aerospace industry. What's more, the company is still reeling from the ongoing problems with the 737 MAX and the legal fallout from two fatal crashes over the past year. * 10 Vice Stocks to Spice Up Your Portfolio Shares are breaking down out of a five-month pennant pattern, setting up a decline back below its 200-day moving average. The company will next report results on July 24 before the bell. Analysts are looking for earnings of $1.8 per share on revenues of $21.5 billion. When the company last reported on April 24, earnings of $3.16 missed estimates by 3 cents per share on a 2% drop in revenues.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Energy Stocks to Buy to Light Up Your Portfolio * 10 Vice Stocks to Spice Up Your Portfolio * 7 of the Best ETFs to Buy for a Slowing Economy Compare Brokers The post 4 Trade War Stocks to Sell as Tensions Escalate appeared first on InvestorPlace.

3 Bargain Stock Picks by a Top Value Manager
Mon, 06 May 2019 15:05:00 +0000
Sarah Ketterer, chief executive of Causeway Investment Management, is increasingly digging into China, where limited foreign interest creates fertile hunting ground for value managers. But China isn’t her only hunting ground.

Chinese Tech Stocks Getting Crushed Out of the Gate on Monday
Mon, 06 May 2019 13:28:20 +0000
Chinese Tech Stocks Getting Crushed Out of the Gate on MondayNo deal? = bad dealBig names in Chinese tech and internet were set to open anywhere from 4-8% down today.   Alibaba (BABA) looks down 5% on the open.  Somewhere in the same range are

Here's My Top Stock to Buy in May
Sun, 05 May 2019 21:18:00 +0000
This fast-growing multimedia company could deliver big returns.

China's Mass Surveillance More Sophisticated Than Thought
Thu, 02 May 2019 03:40:24 +0000
A mobile app used by police to track citizens in China’s far west region of Xinjiang shows how some of the country’s biggest technology companies are linked to a mass surveillance system that is more sophisticated than previously known, according to a report from Human Rights Watch. The app uses facial recognition technology from a firm backed by Alibaba Group Holding to match faces with photo identification and cross-check pictures on different documents, the New York-based group said on Thursday.

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