BAIDF trade ideas
BIDU Staged ShortsWhat's bouncing around in my mind is Staged Shorting and I'll use BIDU as an example:
Normally I'd short the entire amount of my contracts the moment I think it's going against me. If it doesn't I have 100% of my short going against me and it can quickly lose me more than I've been protecting.
I think on Saturday morning it was about $160 when I sold 10 x $150 NPs. The next day it dropped 3%, then the next day it dropped 3% and so on. What if I'd shorted 250 cfds each time it hit 25% of the buffer until it reached my strike where I would short the last 250 cds and thus be 100% covered at that point.
If it bounces up from my first short, it's not too bad because it's only a quarter bounce and would take a lot longer to lose me more than I'm protecting but I'd have a stop on that first staged short.
If it drops to the next 25% level, I would repeat. As above. But, the first stage would have a tidy profit, so the 2nd stage could have a wider SL. If it reaches the 3rd stager point, repeat, except 1 has a really nice profit and 2 stage has a tidy profit so 3 could be really wide.
If it hits the strike, repeat. If it blows through we're 100% covered, and we've probably doubled our profit after fees from all the stages and thus we actually want it drop to our strike if anything.
Stage 0: Sell 10x $150 Naked Puts when BIDU was at $160>
Stage 1: Short 250 CFDs at $157.50 (haven't picke the SL yet but add a figure here)
Stage 2: Short 250 CFDs at $155 (insert SL). Profit from S1= $595 (inc brokerage)
Stage 3: Short 250 CFDs at $152.50 (insert SL). Profit from S1+S2=$2490 (inc brokerage).
Stage 4: Short 250 CFDs at $150. Profit from S1+S2+S3= $3660
The big risky one is stage 1. Let's say it drops down to and activates then rises back up to the open price and your short is still active (no sl just for example). The Sell price for the $150 NP was .47 which is $420 profit (generally). If your stage 1 short goes up $1.70 to $159.20 that's all your NP profit gone and you have to SL before then. But what if the volatility meant it went back down again because $1.70 isn't that much of a swing with BIDU, you've lost all your profit and still not covered on a the trip down. So it def needs some thought.
BIDUAs Price dumped out to the SMA50 (Blue). SStoch. put in higher low bottom. Steam left in the tank here.
Short Idea for $BIDUBearish Harmonic Pattern
Nice MACD divergence
Stoch is showing overbought status
RSI is a downtrend
We are reaching major resistance zone. The R:R here is 3:1.
Baidu Inc (NASDAQ:BIDU) Resistance Level Quickly Approaching Baidu Inc (NASDAQ:BIDU) continues to surge higher today. The stock is trading at $157.56, +2.38 (1.53%). Baidu Inc is up from the $88.00 level since July 2013. This is a massive gain of 80% in just three months. While the bulls are cheering, smart investors may have an amazing opportunity to short it. The 2011 high on Baidu is $165-$166. This is also a max move extension level. Smart traders can short the stock here for at least a 10% pull back.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
Baidu Inc $BIDU Breaks Out, Heads For This Target Baidu Inc (NASDAQ:BIDU) has broken out today. The stock had resistance at a gap fill price of $145.00. That has now been taken out. The next major level of resistance on BIDU is $152.00. Should it be hit in the next two days, a good shorting opportunity would arise.
BIDU is a Chinese ADR. It has run from below $90 to its current level in less than three months. A truly amazing move as it appears the Chinese economy is recovering. When euphoria is at its max, the top will be in. Matched up with this great double top at $152.00, a great risk/reward short can be had. The pull first target would be at $145.00.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
High Volume seen on Call Options The High volume seen now with Calls with Bidu indicate that the FLAG seen on 1H would break soon forward 153 maybe in 2 weeks , i would suggest a high risk signal by Buying 13 Sep Bidu strike 145 @ 0.23 Now
BIDU-`shortOver extended, gaps to be filled- as long as price is above the oblique support line is fine.
BaiduduiH&S/Cup+Handle breakout into resistance. This one's not ready, folks. Let her come in before initiating long. Possibly a 12% +/- short setup from here.
BIDU- Falling wedge/ABC pattern/ Bullish chart with potential.
- falling wedge
- 3 falling peaks
- ABC Harmonic
If price fails to rise above the first peak (3) it might hurt the wedge target- and I will say- short.
BIDUTop of Ascending, broadening wedge. Can break either direction, but RSI is pretty high. Bulkowski says not to short the top because the bottom trend line is ascending...but
BIDU - Bearish GartleyThe main trend on BIDU is still down, but we can see that a Bearish Gartley was formed so I used a new wonderful tool from TradingView to under line the pattern. The price has hit the PRZ, and there are some bearish signals. On short term I expect for the price to fall back to point be or even lower. A close above the PRZ would invalidate this setup. Great job Trading View.
Economic Releases Tuesday, July 16, 2013Economic Releases for Tuesday, July 16, 2013 overlayed on BAIDU which is set for news overload tomorow.
BIDU Short - Falling MACD/RSIShort BIDU due to falling MACD and RSI. Also, MACD histogram crossover is pending. Downward channel and strengthening down-trend via DMI.
Baidu - looking for a second leg upBaidu looks like we can hope for a second leg up. Good opportunity would be at 50% retracement of AB and earlier resistance from July. Stop below the 0.786 retracement and target at AB=CD.
