Early last year with the stock at $80 I called out $BIDU's bullish chart pattern.
http://stocktwits.com/message/12602555
http://stocktwits.com/message/12747148
https://www.optionmillionaires.com/bidu-falling-wedge/
The stock has rallied over 100% from those levels.
Recently the stock, after hitting fresh all time highs at over $190 a share, has seen a massive reversal. I think the reversal has found some support here at current prices, namely the $140 level, and looks poised for a recovery back over the $160 level.
If we've learned anything about trading $BIDU, its that the stock can move quickly in either direction. The $50 drop from all time highs has happened swiftly, I think the reversal higher will be just as swift.
The best part of this trade idea is that the call options are not pricing in a sharp reversal higher. I currently own some call contracts and will be looking to add as the week progresses. Just like I called out the lows last year when the stock was at $80, I think we may have seen the lows for $BIDU this spring.
I think its BUYDO and not BIDONT for the short term. After the stock moves back over the $165 level we can re-evaluate.
