Have Profit Will Run, Make Money with Baidu in 1-Day

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Feb 20 2008
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It’s not easy to make money trading option or investing stocks during such a bearish market. I hope you’re aware (or at least read about it either from analysts or FinanceTwitter) the bear is still roaming and perhaps will continue to do that for a couple of months to come. But when you’re trading in the stock markets that allow you to trade either way – up or down, long or short, buy Call Option or buy Put Option, then your chances of making money has just increased by 100 percent.

I have wrote and predicted why Baidu.com, Inc. (Nasdaq: BIDU, stock) might takes its pit-stop at $220 before going down to $200 level. Since then it has gone yo-yo up and down with great volatility testing investors / traders fear and greed but generally the stock was trading on downwards trend. It almost touched the pit-stop at $220 on 2nd Feb 2008 but staged a fast rebound to above $230 level thereafter. Looking at the chart it appears the $280 is the latest resistance level for Baidu.com.

Baidu stock chartBased on the price-volume, Dow and Nasdaq behavior I opened up a position – BIDU Mar 260 Put Option yesterday (19th Feb 2008). Satisfied with the profit, I closed the position today (20th Feb 2008) netting about 38 percent profit in 1-day of trading. As a matter of fact I could wait to scoop more money but I do not wish to become a pig. Remember the “Bull and Bear makes money, Pig get slaughtered” phrase? The market could turn the table on me anytime now so I thought it would be wise to be contented with the profit.

Baidu profitThere’re times to be greedy and let your profit builds but certainly not today, not this round. In fact if you ever noticed, traders nowadays tend to lock their profit and run pretty fast without think twice about letting their trades exposed for another day, if possible – a sign that the volatility of the stock market has get into their nerves. It could be due to the fact that U.S. economy is still so uncertain. Nevertheless there’s one thing that never change – the pace of making money in Bear Market remains faster than Bull Market.

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