Baidu.com IPO (The Chinese Google)

[spikefader]

Buy the stock here at $64.35, sell the MAY 19 $55 call for $10.70, and you've only got $53.65 in the stock. They'll buy it for $55, but you make $135 per 100 shares in 8 days.

Just thought I'd revisit this call here NB to show how nicely it played out from your recommendation. Credit where credit is due!

If you bought 100 shares of BIDU at 64.35 and sold that $55 strike call ($10.70) then your shares are up an impressive 29% at $83.41 or $8341 value (profit of $1624). The call costs you $27.20 or $2720 premium to cover your short call position that you sold for $1070 (-1020 loss). So $1624-1020=+$604 profit from the entire play, less tiny commission if you're with IB.

+$604 profit from a bottom-line outlay of 5400 (after you sold the call) is a return of 11% on your investment in one day. Fantastic. And you may have made another 100 or so had you bid to buy the call back rather than pay the ask at close as in my example.

I don't know if the May 55 was the call you played, but it was one of the ones you recommended. Well done sir! When my option head grows up, it wants to be just like yours hehe

[sisterwin2]

lol except maybe your birthday and special occasions hehe

and when your out to sea..... which is where I may as well have been seeing MFLX tanking like it did.

[New-born baby]

$60 puts

Just thought I'd revisit this call here NB to show how nicely it played out from your recommendation. Credit where credit is due!

If you bought 100 shares of BIDU at 64.35 and sold that $55 strike call ($10.70) then your shares are up an impressive 29% at $83.41 or $8341 value (profit of $1624). The call costs you $27.20 or $2720 premium to cover your short call position that you sold for $1070 (-1020 loss). So $1624-1020=+$604 profit from the entire play, less tiny commission if you're with IB.

+$604 profit from a bottom-line outlay of 5400 (after you sold the call) is a return of 11% on your investment in one day. Fantastic. And you may have made another 100 or so had you bid to buy the call back rather than pay the ask at close as in my example.

I don't know if the May 55 was the call you played, but it was one of the ones you recommended. Well done sir! When my option head grows up, it wants to be just like yours hehe

Spike,
No, that play I suggested there was "the chicken guts play." I didn't make that one; it was just suggested as the ULTRA safe way to make dough off of BIDU.

The actual plays I made was to sell the $60 puts at $2.50. Yeah, Mildred!

The puts were covered at $.10, or a profit of $238 per contract ($250-$1 commision going in, $1 commision going out, plus $10 to buy out of the option). I didn't buy the stock and sell the calls because I was convinced the chart was bullish enough for this nine day period.

[alice4321us]

NB, what would be good entry for BIDU now it closed strong today. Do you anticipate this going higher or taking a breather.