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.
