Call Spread on BIDU on 11/7/2013

Baidu, Inc. (BIDU) is the leading Chinese language Internet search services.

It also offers a Chinese language search platform for businesses to reach their customers. T

he company provides search products, social products, UGS-based knowledge products, location based products and services, music products, PC client software, mobile realted products and services, products and services for developers, and products and services by associated or cooperative Websites.

For the lastest quarter (Q3), total revenues were 8.89 billion yuan ($1.45 billion), a 42% jump over the 6.25 billion yuan ($1.02 billion) in the same period the previous year. Attributable net income was 3.05 billion ($498 million, or $1.41 per diluted American depositary share), or 1% higher than Q3 2012's 3.01 billion ($491 million; $1.40).

The company provided revenue guidance for its current Q4, is anticipated to be 9.22 billion to 9.48 billion yuan ($1.51 billion to $1.55 billion).

Shares are heading higher in an upward trading channel. Presently they are at the lower boundary of the said channel.

52-Week Trading Range: $82.98 - $169.75

Last Trade: $146.45

Trade Buy 1 December $150.00 Call at $6.70 Sell 1 December $155.00 Call at $4.80 For a net debit of $1.90 Profit/Loss Analysis Breakeven at $151.90 Maximum profit is $310.00 at strike of $155.00 Maximum loss is ($190.00) at strike of $150.00 Closing Summary Sold 1 December $150.00 Call at $9.60 Bought 1 December $155.00 Call at $6.60

Position closed on 11/14/2013 at price of $3.00 with a 57.89% gain in 6 days.

Updates

11/14/2013 9:37:56 AM

We are closing the BIDU trade and take profits here.

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