Baidu.com (BIDU) is off $6.48 to $124.43 in active trading of 4.4 million shares. No news on the Chinese Internet company to explain the relative weakness, but options on the stock are actively traded as well. 35,000 calls and 22,000 puts so far. Some players seem to view the weakness as an opportunity for bullish trades, as the Weekly 130 and September 140 calls are the most actives in the stock and more than half of the flow has been buying interest (50 percent Ask). However, Weekly 125 and 130 puts are the next most actives and 30-day ATM implied volatility is moving up 16 percent to 34.5. BIDU was at multi-month highs of $134 Friday before suffering a two-day 7.2 percent skid to start the week.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.