Add BIDU Puts

Gain New Downside Exposure

By Bryan Bottarelli
Monday, March 03, 2008 2:22 PM EST
Mon, 3 Mar 2008 19:22:00 GMT

PLAY: Buy the BIDU March 210 Puts (BDU OB) at or under $4.00, good for the day.

Dear Bottarelli Research Member,

The NASDAQ’s golden-boy, Google (GOOG – NASDAQ), is losing its magic touch.

GOOG

As you can see from the chart, shares of GOOG have dropped from $700 in late 2007 to $460 here in 2008, as the pay-per-click business model appears to be reaching a saturation point. If this is the case, shares of GOOG could continue to fall, and this opens up an opportunity to establish a new put play on Baidu.com (BIDU – NASDAQ).

BIDU

Since they provide Chinese language Internet search services, Baidu.com is commonly known as the Google of China. And as you can see below, BIDU shares are finding resistance at their 200-day moving average, so let’s go ahead and profit off any further weakness by entering a new put position now.

PLAY: Buy the BIDU March 210 Puts (BDU OB) at or under $4.00, good for the day. Place a sniper sell order at $5.00 and a protective stop limit at $2.10.

Lock and load!

Sincerely,

Bryan Bottarelli
Editor, Bottarelli Research
Featured in this Alert:

© 2013 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Premium Subscriptions

For specific buy and sell recommendations, subscribe to a Bottarelli Research trading advisory service.


Sign up for the free
Bottarelli Research Chart of the Day and Newsletter