I have long position in $BIDU and wanted to look at protecting against a downside move. One way to do that is to initiate an Option Collar. This stock has Weekly options available so I took advantage of this to initiate the following trade:
Let me break this down for those that are not familiar:
I am long stock
I am short the April 12 weekly 90 Call
I am long the April 5 weekly 87.5 Put
This Collar was done for a $.55 credit (what a deal)
At the moment price has fallen through the Put strike so it is ITM (in the money).