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One of the best "price mover" opportunities in the stock market today is (BIDU) Baidu.com Inc.: Internet Information Provider:
Company Profile: Baidu, Inc. provides Chinese language Internet search services primarily in the People's Republic of China and Japan.
The company offers a Chinese language search platform that enables users to find online information, such as Web pages, news, images, and
multimedia files. Its products include Baidu Web Search that allows users to locate information, products, and services using Chinese language
search terms; Baidu Post Bar and Baidu Knows, which provides users with a query-based searchable community; and Baidu News that provides links
to local, national, and international news.
"Price Tracking" and following what's going on in the market will help you determine the best time to buy into a position on BIDU Options. Positive
comments in the news, price target upgrades, upcoming earnings announcements -- these are the events that can help boost the share price on BIDU.
Stock Options prices will trade higher as the share price moves up -- you want to be ready to take advantage of the price moves when these type of events
come up. Also -- downgrades, negative press comments, and negative news can cause the stock price to trade down....which will give investors an
opportunity to buy "PUT Options" to take advantage of the falling stock price.
You definitely want BIDU on your "Stock Options Investment List", and part of your 2010 Financial Investment Plan!
** Company has unique market share in the China market.
** Company stock shares have excellent price movement with consistent high volume activity.
** Company allows "Stock Options" available for individual investors.
If you need more Due Diligence information, I would recommend going to www.yahoo.com, look for the “Finance” link
on the home page – you will be
able to access a lot of the “FREE” information from this section to help you with your research and planning for the companies you are
interested in. Enter the company stock symbol (Ex. BIDU) in Stock Symbol entry field. All of
the informational selections will be on the left side of the screen (Summary, Options, Historical Prices, Company Events, Profile, etc.). Use these
sections to help gather as much information as you need.
The historical screen-captures below are great examples of how profitable buying the stock options can be. As you can see -- "Price Movement" in the
low-cost options is where the big gains come from. Look for these type of opportunities on BIDU again every month when the
share price trades higher on any positive news! You can use these historical screen-captures to practice some "Stock Option Price Calculations" to
see the actual profit gains. The circled "<-Buy" value is the Premium Price Paid. The circled "<-Sell" value is the Projected Premium Price.
Click Here --->
BIDU MAR10 530 CALL OPTION , to bring up the BIDU CALL OPTION historical price screen-capture
that shows a nice gain over a two week period.
Click Here --->
BIDU MAR10 540 CALL OPTION , to bring up the BIDU CALL OPTION historical price screen-capture.
Click Here --->
BIDU MAR10 550 CALL OPTION , to bring up the BIDU CALL OPTION historical price screen-capture.
Follow the simple steps below to get started with a practice calculation!
How To Do Stock Option Price Calculations!
Step 1.
Make sure you have installed a copy of my Stock Price Calculation Program! (See the previous page if you haven't done that yet!) If you have or
if you have the Full-Purchased Version installed, start with "Step 2"!
Step 2.
Click (or Double-Click) the desktop icon "My Stock Calculation Program" to start the program. Select the 2nd button "Options Calculation Program", follow the directions on
the screen, select the "Call Option Calculations" button!
Step 3.
Now, you need some stock option data to enter into the entry fields for the calculation screen. (You can print "Page 3" for a hardcopy of this section)
Enter the info below for the required data fields:
Call Option Description: BIDU MAR10 530 CALL 03/03/10
Call Option Symbol: BIDU530
Premium Price Paid: 7.30
No. of Contracts: 1
Projected Premium Price: 39.80
Press ENTER or click on "Calculate".
Enter the correct fees:
Reg Fee: 0.02 (on the Buy To Open side)
Reg Fee: 0.01 (on the Sell To Close side)
Press ENTER again, or click on "Calculate".
Now, change the date that is in the "Sell To Close Projections" entry field to 03/19/10
Press ENTER again.
Click on the "Save" button to save the calculations to your hardrive.
What was the Total Call Option Cost? ________________ (This would be your initial investment cost)
What was the Projected Total Option Value? ___________ (This would be the overall value of the investment)
What was the Gain for Total Contracts? ______________ (This would be the actual profit made)
Click Here --->
BIDU MAR10 530 Stock Option Calculation , to see the results from the calculation data above.
"OptionsXpress" is the default for pre-set commission rate.
That's how easy this Stock Price Calculation Program calculates your profits!!! Go back to the calculation screen and change the "No. of Contracts" to
"5", then press ENTER! If you can afford to buy more contracts, 5 - 10 contracts would give you much greater profits! Change the "No. Of
Contracts" to "10", then press ENTER again! This is why I think stock option investments are well worth the investment for a short-term opportunity!!
Simply change the "Number Of Contracts", "Premium Price Paid", and "Projected Premium Price" then press ENTER to see
different pricing calculations!
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