Liz here, in a hurry because I’m headed to the baby doctor for Pip’s bi-weekly performance review.
He’s under a lot of pressure right now (I think the actual corporate term is P.I.P., Performance Improvement Plan) but the writing on the wall is clear: he won’t be in his current position for much longer than two months.
I think he knows, but he’s in denial.
Anyway, I asked CJ to send me over a quick trade in the meantime, and he hit me back with these puts, which are so expensive that honestly, they’re more like $10 slots.
“It’s time value,” he explained. “We’re going out to September here.”
As always, be mindful of your own risk tolerance. If I didn’t have to attend the P.I.P. meeting, I’d probably add in a spread for the benefit of Goodwill shoppers like myself. Maybe I’ll circle back and do that later.
But in the meantime, grab these puts on a beleaguered Chinese company (if you can lift them)…
CJ Is Bearish on BIDU
Here he is…
China is still struggling to get over the Covid hump and signs that the economy are wavering have been making their way through the headlines.
Stock continues to lag the Nasdaq 100 as a result and the 200-day is hovering overhead as resistance.
Bearish momentum is starting to take hold as $150 continues to reject.
Breaking $135 takes the stock below the 50-day again and that last time we saw that there was selling pressure – twice – to drive the stock to $100.
We’re looking for 100% gains, but take half at 50%.
Here’s what to do…
|10-DOLLAR SLOTS: CJ
Action to Take:
Buy to Open the Sept 16, 2022 BIDU $140 Puts using a limit price of $11.00
Enter as a Good til Canceled (GTC) order.
I’ll see you back here tomorrow with another record-breaker (it’s a BLEH stock that’s so bad it’s truly one of a kind).
July 20 2022