Investors with a lot of money to spend have taken a bearish stance on Baidu BIDU.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with BIDU, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 13 uncommon options trades for Baidu.
This isn't normal.
The overall sentiment of these big-money traders is split between 38% bullish and 46%, bearish.
Out of all of the special options we uncovered, 6 are puts, for a total amount of $343,192, and 7 are calls, for a total amount of $345,995.
Projected Price Targets
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $90.0 to $125.0 for Baidu during the past quarter.
Volume & Open Interest Trends
In today's trading context, the average open interest for options of Baidu stands at 1833.33, with a total volume reaching 3,189.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Baidu, situated within the strike price corridor from $90.0 to $125.0, throughout the last 30 days.
Baidu Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BIDU | PUT | SWEEP | BEARISH | 01/17/25 | $14.05 | $13.95 | $14.05 | $105.00 | $140.5K | 503 | 105 |
| BIDU | CALL | SWEEP | BULLISH | 01/17/25 | $8.5 | $8.45 | $8.5 | $125.00 | $122.4K | 1.3K | 0 |
| BIDU | PUT | SWEEP | BEARISH | 06/21/24 | $1.61 | $1.59 | $1.61 | $90.00 | $80.5K | 2.7K | 1.5K |
| BIDU | CALL | SWEEP | BEARISH | 05/03/24 | $3.6 | $3.45 | $3.45 | $100.00 | $51.7K | 1.2K | 182 |
| BIDU | CALL | SWEEP | BULLISH | 05/10/24 | $4.55 | $4.55 | $4.55 | $100.00 | $41.4K | 953 | 1 |
About Baidu
Baidu is the largest internet search engine in China with 84% share of the search engine market in September 2021 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2022. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.
Following our analysis of the options activities associated with Baidu, we pivot to a closer look at the company's own performance.
Current Position of Baidu
- Currently trading with a volume of 1,994,545, the BIDU's price is up by 1.37%, now at $101.27.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 20 days.
What The Experts Say On Baidu
A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $160.5.
- An analyst from HSBC has decided to maintain their Buy rating on Baidu, which currently sits at a price target of $145.
- An analyst from Citigroup persists with their Buy rating on Baidu, maintaining a target price of $176.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Baidu with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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