Market Overview

Baudi Puts Look Attractive! (BIDU)

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Baudi Puts Look Attractive! BIDU

Baidu, Inc, (Nasdaq: BIDU), has sky rocketed on the news that Google Inc (Nasdaq: GOOG) is considering withdrawing for the country.

The U.S. search giant's announcement that it will stop censoring its Chinese search site, and may withdraw from the country altogether, triggered an outpouring of concern, and a rally in BIDU.

There is an opportunity to buy BIDU puts with the assumption that Google will work out its difference in China. Implied Volatility has moved up to from its low in December, but on a relative 12 month basis, Volatility is low.

Yesterday’s close was 386 on BIDU, and the February 400 Put is trading at $48 dollars with the stock trading at 437.

 

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