$BIDU Earnings Report

BIDU reports earnings tomorrow after the bell.  Like many of the recent tech reports, I think the reaction will be bullish, the question is... just how bullish?  At the start of last year with $BIDU struggling to hold the $80 level and analysts, including Citigroup, downgrading and talking negatively about the stock, I said it was going to defy gravity, break $100.  

I also pointed out the wonderful wedge pattern.  It worked out well.  But who cares about yesterday.  Tomorrow is all that matters.

The market is pricing in roughly a $12 move for $BIDU tomorrow.  Today almost 2 call contracts traded for every one put contract.   While the market is saying there is a chance for a 5%+ move for $BIDU, I think we are more likely to see a muted move into the Friday session.  Much like $AAPL's earnings reaction last night, and during the trading session today.  The money was made buying the higher call strikes after the open today.

If you think $BIDU is going to make that 6%+ move, the $212.50 calls at $2.00 are what I would be buying.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

More Posts by UPB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply