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Baidu Inc (Symbol: BIDU) launched new options today, featuring expiration in April 2026. Investors now have access to a put contract at the $120.00 strike price with a bid of $11.90, allowing sellers to potentially realize a cost basis of $108.10 per share, representing a discount to the current price of $122.55. Current odds suggest a 61% chance that this put contract could expire worthless, which would yield a 9.92% return on cash commitment, or 20.68% annualized.
Additionally, a call contract at the $130.00 strike price has a bid of $12.55. If shares are purchased at $122.55 and the call is sold, the total return could reach 16.32% if exercised by April 2026. There’s also a 48% likelihood that this contract will expire worthless, in which case it would yield a 10.24% boost or 21.36% annualized on top of the stock’s gains.
The implied volatility for the put and call contracts are 49% and 50%, respectively, while the trailing twelve-month volatility of BIDU is calculated at 46%.
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