New Data: Baidu Is Expected To Move 5% Post Earnings

Speaking to Benzinga, TD Ameritrade Chief Strategist JJ Kinahan said that ahead of releasing its Q4 earnings, Baidu Inc (ADR) BIDU is expected to make an approximate 5 percent move (up or down) based on implied volatility.

“Many think of Baidu as a very volatile stock, but its implied volatility is only at the 36th percentile,” which was relatively low in Kinahan’s view.

Kinahan added that options trading activity was higher on the monthly options rather than the weeklies. February $200 Puts were actively traded, and on the weekly options, the February $205 Puts were seeing the most action.

“It looks like a bit of downside being played,” Kinahan said. He noted that Put-buyers may also be owners of the stock looking for downside protection.

Heading into the earnings release, Baidu Inc (ADR) traded at $214.84, down 2.10 percent.

Kevin Riley and Brianna Valleskey contributed to this report.