Deep-pocketed investors have adopted a bullish approach towards Baidu BIDU, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in BIDU usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 13 extraordinary options activities for Baidu. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 53% leaning bullish and 46% bearish. Among these notable options, 4 are puts, totaling $150,020, and 9 are calls, amounting to $594,990.
What's The Price Target?
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $105.0 and $200.0 for Baidu, spanning the last three months.
Analyzing Volume & Open Interest
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Baidu's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Baidu's substantial trades, within a strike price spectrum from $105.0 to $200.0 over the preceding 30 days.
Baidu Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| BIDU | CALL | TRADE | BULLISH | 06/21/24 | $110.00 | $140.4K | 254 | 81 |
| BIDU | CALL | SWEEP | BULLISH | 03/15/24 | $120.00 | $137.1K | 2.0K | 462 |
| BIDU | CALL | TRADE | BEARISH | 06/21/24 | $110.00 | $85.0K | 254 | 0 |
| BIDU | PUT | SWEEP | BEARISH | 01/17/25 | $125.00 | $71.5K | 1.7K | 38 |
| BIDU | CALL | TRADE | BULLISH | 03/15/24 | $110.00 | $62.5K | 1.9K | 124 |
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
- With a trading volume of 1,362,059, the price of BIDU is down by -1.48%, reaching $116.15.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 43 days from now.
Expert Opinions on Baidu
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $210.0.
- Reflecting concerns, an analyst from Benchmark lowers its rating to Buy with a new price target of $210.
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.
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