Deep-pocketed investors have adopted a bearish approach towards Baidu (NASDAQ: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 18 extraordinary options activities for Baidu. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 27% leaning bullish and 55% bearish. Among these notable options, 7 are puts, totaling $725,784, and 11 are calls, amounting to $929,232.
Projected Price Targets
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $40.0 to $130.0 for Baidu during the past quarter.
Analyzing Volume & Open Interest
In terms of liquidity and interest, the mean open interest for Baidu options trades today is 1242.29 with a total volume of 4,998.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Baidu's big money trades within a strike price range of $40.0 to $130.0 over the last 30 days.
Baidu 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
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.
After a thorough review of the options trading surrounding Baidu, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Baidu
- Currently trading with a volume of 1,928,081, the BIDU's price is down by -0.91%, now at $98.85.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 83 days.
Professional Analyst Ratings for Baidu
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $150.0.
- An analyst from Morgan Stanley downgraded its action to Equal-Weight with a price target of $125.
- Consistent in their evaluation, an analyst from Benchmark keeps a Buy rating on Baidu with a target price of $180.
- An analyst from Susquehanna persists with their Positive rating on Baidu, maintaining a target price of $135.
- Consistent in their evaluation, an analyst from Mizuho keeps a Buy rating on Baidu with a target price of $130.
- In a cautious move, an analyst from Benchmark downgraded its rating to Buy, setting a price target of $180.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Baidu options trades with real-time alerts from Benzinga Pro.
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