Chaos in China: Google vs Baidu, Profit From Either Up or Down

A 2nd Baidu (BIDU) executive left Baidu this week, causing a promt 7% drop in the company. With Google having its own share of problems in China and having had simlar drops, this is a prime situation for our straddles.

Below are straddles/strangles for February and June.

(please click to enlarge)

These were computed with StraddlesCalc Tool, which indicates the maximum move required for profitability. These are not for the faint of heart, nor for the faint of deep pockets as the options are very expensive. The straddles allow an investor to profit whether the stock goes up or down, as long as it moves.

Please do your own due diligence. This is not advice. Options are very dangerous and may cause 100% loss.