Tag Archives: BIDU

$BIDU Bottom In…….. For Now?

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There is no arguing against the selling pressure that BIDU has endured since hitting over $155 a share back in April. Today the stock plunged to fresh multi-year lows in spite of respectable market conditions. The last few years stocks like BIDU rallied 2-3% on days like today, but that was not to be so today as the stock got clobbered over the first few hours of trade.

Then, midday, the stock got a pulse and the buyers surfaced their heads pushing BIDU back over $93 a share. Earlier in the day $90.55 was hit representing the lowest intra-day price for BIDU since early 2010. The question now... has BIDU bottomed? Did Wednesday's $90.55 low represent a great buying opportunity? Or are we just in the midst of a breather before a plunge under $90?

I highlighted earlier this week the solid demand/support at $92. BIDU broke that early today but was able to poke its head above that figure. If $BIDU closes below that price, I will step away and exit my calls. However as long as BIDU remains above that price I am very bullish on the stock and think it trades back over $100 within a week or two.

While the chart isn't going to tell me how many shares the sellers have left, it is telling me that the sellers haven't been able to break support with any conviction. Even today's plunge below $91 saw the buyers step in and drive the stock back over $93.

I like the $97.50 and $100 calls for next week. I currently own the $100/95 calls that expire this week.

The $97.5 calls expiring next week are $.29, the $100 calls for next week are $.63. I like them both.

Baidu (BIDU) – Wall Street Darling No More

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Today officially marks the end of Baidu (BIDU) as the once loved wall-street darling that rose 1000%+ from the 2008 collapse... at least in my book. It used to be a stock every hedge fund owned and every analyst had buy ratings with lofty price targets. Today Credit Suisse downgraded the stock and reduced it's price target from $118 to $83, which is the lowest price target on the stock right now. I think that will change as analysts will continue the trend of downgrading the stock on competition and market share concerns.

Folks bearish on the stock have been raising their bets on future downside, as 8,494,038 shares are currently short and is an increase of over 1 million shares from the month before. I expect that to increase 3-4 fold in the coming weeks.

We are betting on a quick move under $100 for Baidu(BIDU) this week, as the selling pressure increases and shorters continue to increase their bets. We currently hold the 100/95 weekly puts and the October 20th puts. Baidu(BIDU) can be a very volatile stock, so be prepared for some wild swings here but to me it looks like the 3 week battle of bull vs bear has been decided with a decisive victory coming from the Bears here shortly.

Baidu is trading at $106.32 as we write this.

 

9-26 Watchlist

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Yesterday pulled quite the rug under some of the call plays that looked great throughout the morning. This market can be extremely difficult at times, and yesterday taught us why you need to be nimble.

GOOG made a nice move to $764 and pulled back to $749 eod and there were quite a few plays with similar selloffs towards the end of the day. I think this is still a pullback setting us up for new highs as opposed to a correction. Nothing is ever certain so will be playing the next few days a little more cautious.

I do hold quite a few OCT expiration plays, so not as worried about the intra-day except for some of the weekly positions i hold.

Here are a few im watching for possible flips today:

GOOG - may look to get back into the 775 calls if GOOG shows any support. Those calls hit 4.50 and fell all the way back to 1.25 in an hours time.

LNKD - continue to look for entry for calls, now the 125s maybe a nice try. Will wait for some volume and $121 before taking a look.

WYNN - Will break one of these days. It tired yesterday then fell almost $3. Looks good PM and will wait for $115 break to get more of the $120 calls.

 

Still holding FDS calls and will hold if it breaks and holds 100 in the next day or so. Other tickers on watch:

JBL, PCLN, AAPL, BIDU, SINA, MLNX

 

Lets have a great day folks!

 

- Jimmybob

9-5-2012 Morning Watchlist

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We started off the month of September with a down day, but not as well off the lows. Today looks like another weak start, but seems to be like we get our footing and start looking to string some green days together. Seems the possibility of the ECB providing unlimited support to bonds helped stave off the negative news of Fedex lowering it's guidance.

We shall see how today plays out, here is what I am watching.

SINA/BIDU broke out yesterday. Had them on watch yesterday from the rumor of possible negative coverage by Muddy Waters. Turns out that was wrong and both stocks rallied. SINA also seemed to rally on a departure of one of its directors. Still think BIDU is headed over $118 short term and holding the $120 calls.

LNKD upgraded by Jefferies yesterday after the bell from $96 to $142. Seems Analysts starting to see what I have seen for months... a stock that should be $130-$150 by now. Today maybe the day it closes over $110. $115 calls maybe a nice play.

The rest of the market looks somewhat boring here PM besides FB, which I will not play.

Other stocks on watch : PCLN, AMZN, AGQ, NFLX, AIG, and FSLR.

Keep an eye on chat and lets have a GREEN day!

 

- Jimmy

 

Baidu (BIDU) – Bounce?

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With the majority of earnings behind us, it can become challenging to find some volatile plays to make some money on. Pick the wrong trade and you will watch your premium erode. Finding stocks at the top or the bottom of a trend can be the best way to bank some coin.

Baidu (BIDU) fell over the past two weeks from possible competition for it's 80% share in the China Internet Search market. Qihoo 360Technology Inc. (QIHU) announced it was launching its own search engine, and analysts have estimated it could capture nearly 10% of the market shares in just 6 months, causing the decline in shares of Baidu (BIDU).

It looks like Baidu (BIDU) found a bottom at $111 last week, and is starting to bounce. We like the 50DMA and 200DMA as possible resistance points on the way up. We still like the Baidu (BIDU) story and hold the weekly $120 calls @ .25.