Seems That Baidu is Able to Predict the Market Trend
I mentioned in my previous post that Baidu’s September option pain was $300. I checked it again and the option pain was higher a little bit at $310 at the moment. What 
would be your guess if you predict Baidu’s price movement without looking at the option pain a couple weeks ago when Baidu was about $340? I would probably think it would go up instead of retreating. Obviously option pain can really tell something. It can tell how institutional traders see a particular stock. If option volume on an issue is large enough option pain on that issue may be able to tell how institutional traders see the market overall.
I checked INTC and BAC September and October option pain. They are trending downward. They seem to tell the bearish sentiment of the market should be extended into October. However Baidu’s Oct option pain is at $330 which is higher than September’s. I am not sure if you agree or not but I have already convinced that option pain is a very good leading indicator on the underlined issue or even the overall market.
Anyway I didn’t trade for a while. I was busy looking for a new job. I add 200 shares of CSKI at $13.09 and I sold 2 contract of Baidu Sep 290 Put at $3. I was thinking if Oct Baidu option pain is $330 I wouldn’t mind to have it at $290 in the mid of September. There is $20 difference or about 9% difference between $290 and Sep option pain. I thought it could be safe. But again who knows. We will see how it goes.
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I agree with you. CSKI is a good stock and surprisingly undervalued right now. I reminds me of AES when it was at $4. For CSKI, with its growth on product line and revenue, I wouldn’t worry about its valuation. Short-term target: $17.
Nice post you got here. It would be great to read more concerning that theme.
Очень интересно!!! Только не очень могу понять как часто обновляется ваш блог?
The good news is that the company can put in place a 105b-1 plan, whereby they can instruct their hired broker/dealer to buy a set amount of shares below any instructed price over the next 12 months without any blackout periods.
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