Baidu.com (BIDU) Showing Bearish Technicals With Resistance At $114.33
1 days 4 hours 21 minutes ago - FreshBrewedMedia via Comtex
Baidu.com Inc (NASDAQ: BIDU) closed Tuesday's trading session at $112.34. In the past year, the stock has hit a 52-week low of $99.71 and 52-week high of $154.15. Baidu.com (BIDU) stock has been showing support around $109.89 and resistance in the $114.33 range. Technical indicators for the stock are Bearish and S& gives Baidu.com (BIDU) a very positive 5 STARS (out of 5) strong buy rating. For a hedged play on Baidu.com (BIDU), look at the Dec '12 $110.00 covered call for a net debit in the $102.49 area. That is also the break-even stock price for this trade. This covered call has a duration of 80 days, provides 8.77% downside protection and an assigned return rate of 7.33% for an annualized return rate of 33.43% (for comparison purposes only). A lower-cost hedged play for Baidu.com (BIDU) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Baidu.com (BIDU) Jan '14 $55.00 call and selling the Dec '12 $110.00 call for a total debit of $51.05. The trade has a lifespan of 80 days and would provide 5.60% downside protection and an assigned return rate of 7.74% for an annualized return rate of 35% (for comparison purposes only). Baidu.com (BIDU) has a current trailing average dividend yield of 0%.
匿名
发表于 2012-10-3 23:01:10
发表于 2012-10-3 21:48:23
gives Baidu.com (BIDU) a very positive 5 STARS (out of 5) strong buy rating. For a hedged play on Baidu.com (BIDU), look at the Dec '12 $110.00 covered call for a net debit in the $102.49 area. That is also the break-even stock price for this trade. This covered call has a duration of 80 days, provides 8.77% downside protection and an assigned return rate of 7.33% for an annualized return rate of 33.43% (for comparison purposes only). A lower-cost hedged play for Baidu.com (BIDU) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Baidu.com (BIDU) Jan '14 $55.00 call and selling the Dec '12 $110.00 call for a total debit of $51.05. The trade has a lifespan of 80 days and would provide 5.60% downside protection and an assigned return rate of 7.74% for an annualized return rate of 35% (for comparison purposes only). Baidu.com (BIDU) has a current trailing average dividend yield of 0%.