Retracement Short in BIDU

[Steven Place]

After a strong, strong breakdown on earnings, the stock has pulled back into the middle of the range. It’s not overbought just yet but now’s a good time to start scaling into the short side.

Sell to open BIDU Jul 220/230 Bear Call Spread @1.70 HALF SIZE

ADD to the trade at 2.50

CLOSE the trade at 0.50

• This topic was modified 7 years, 5 months ago by Steven Place.
• This topic was modified 7 years, 5 months ago by Steven Place. Reason: added duration

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[Steven Place]

I am breaking from the trade plan and closing out the position early with intent to re-sell.

Here’s why:

1. BIDU is probably forming a higher low and will retest the most recent swing highs.

2. The trade has already captured 50% of the credit after two trading days.

3. The overall markets are getting close to short term oversold which could lead to a broad based bounce.

4. Roger talked me into it

Buy to close BIDU Jul 220/230 call spread @0.90

RE-SELL at 1.70

[Author]

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