I hate this stock. I hate it because it's everyone's little darling. Now it seems retail investors are piling on in the very late stages of the run, weeks or even days before the collapse. There are so many gaps in this turd that we'll have to go down to $65 just to tag them all. Do I recommend shorting darlings of the market, in uptrends as strong of a trend as this? No. But it is worth the risk to buy some OTM puts? Certainly! Believe me, the gap at $395 will be closed sooner than you think.
We are VERY close to the reversal. Take a look at the charts if you don't believe me.
3/17/2010 Update - It seems like the top put in on Monday will be the short term top, as BIDU is likely to retest anywhere between 500-525. I predict that this is not the absolute high, as BIDU will hit $6xx sometime during the summer. $700 is not out of the question. Once that occurs, I will buy leaps as this will crash to fill the gap at $55.
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