Call Spread on BIDU on 10/29/2015

Baidu, Inc. (BIDU) provides Internet search services in China and internationally.

It offers Chinese language search platform on its Baidu.com Website that enables users to find relevant information online, including Web pages, news, images, documents, and multimedia files through links provided on its Website; and international products and services to users in other countries.

The company also provides search products, social-networking products, UGC-based knowledge products, location-based products and services, entertainment products, security products, mobile related products and services, products and services for developers and Webmasters, and other products and services, as well as products and services provided by its associated or cooperative Websites. In addition, it offers online marketing services based on search queries, contextuals, audience attributes, media and placement attributes, and other forms; and value-added consultative services.

The company serves online marketing customers, including SMEs, large domestic companies, and Chinese divisions and subsidiaries of multinational corporations operating in the medical and healthcare, tourism and ticketing, education, software and online games, machinery and equipment, network service, transportation, construction and decoration, financial services, business services, and franchising industries. It sells its online marketing services directly, as well as through its distribution network.

The company has a strategic partnership with CloudFlare to launch a unified Internet security platform. Shares have formed a bullish "cup and hande" ahead of tonight's earnings release. Estimates call for an EPS of $7.17 per share. We expect the comany to beat and guide higher.

We are going to trade November 20th Options.

52-Weeks Trading Range: $100.00 - $251.99

Last Trade: $169.50

Trade Buy 1 November $170.00 Call at $9.15 Sell 1 November $180.00 Call at $5.15 For a net debit of $4.00 Profit/Loss Analysis Breakeven at $174.00 Maximum profit is $600.00 at strike of $180.00 Maximum loss is ($400.00) at strike of $170.00 Closing Summary Sold 1 November $170.00 Call at $12.80 Bought 1 November $180.00 Call at $6.10

Position closed on 10/30/2015 at price of $6.70 with a 67.50% gain in 0 days.

Updates

10/30/2015 9:40:40 AM

We are taking profits on BIDU Call Spread.

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