Q2 STOCKS TO BUY

Option Bulls Barrage Baidu, Inc. (BIDU)

Baidu Inc (ADR) (BIDU) is rallying on a deal with KKR & Co. L.P. (KKR) and Coatue

Digital Content Group
Mar 18, 2015 at 11:07 AM
facebook X logo linkedin


Baidu Inc (ADR) (NASDAQ:BIDU) is nearly 2% higher this morning at $207.14, after announcing a partnership with KKR & Co. L.P. (NYSE:KKR) and Coatue in the used car space. The news has traders rushing into BIDU's options pits, where intraday volume is running at 1.8 times normal levels.

Seeing the most action are the March 205 and 210 calls. A number of indicators suggest these bets are being bought to open, as speculators gamble on BIDU trekking higher through week's end, when the front-month options expire.

Technically speaking, the shares have rallied over the long-haul, up 29% year-over-year. What's more, BIDU is currently consolidating atop its rising 50-week moving average, which acted as support this time last year -- and could again usher the stock higher.

It's also worth noting that the equity's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 1.24 indicates near-the-money put open interest outweighs call open interest in the March-dated series. As these positions unwind ahead of expiration, it could provide Baidu Inc (NASDAQ:BIDU) with another foothold.

Weekly Chart of BIDU since March 2014 with 50-Week Moving Average

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter