Searching for protection in Baidu

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).

One thought on “Searching for protection in Baidu

  1. update: as of the close 4/4 the weekly Put is at 2.35 & the short Call for next week is at .19 cents. The plan will be to sell the Put tomm, buy back the short Call, & sell the weekly 87.5 Call for next week.

Leave a Reply

Your email address will not be published.