BIDU potential top and hedge idea
Excellent move in BIDU over the last several weeks and I think we have recently hit the near term highs. Any further move up will require consolidation and therein lies our opportunity.
Idea 1: Sell Feb 200/220C spreads to fund the 215/205P spreads.
Idea 2: Lopsided Put Butterfly spreads or backratios (given that IV is just below HV at the moment).
Additionally given some volatility due to some Chinese stocks getting delisted from NYSE, there is a potential fear trade here as well to the downside. IMO, that's a stretch but it feeds the bias if anything and does not work against it.
Idea 1: Sell Feb 200/220C spreads to fund the 215/205P spreads.
Idea 2: Lopsided Put Butterfly spreads or backratios (given that IV is just below HV at the moment).
Additionally given some volatility due to some Chinese stocks getting delisted from NYSE, there is a potential fear trade here as well to the downside. IMO, that's a stretch but it feeds the bias if anything and does not work against it.
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