The Baidu (BIDU) options trade that we posted yesterday, turned out even more profitable than we expected. We were looking, for a 20 point move in Baidu (BIDU) on earnings. We set up the trade so that it did not matter how the earnings came in. If they were bad and the stock dropped, we’d make money, ditto if the stock moved up on good earnings.

They earnings were good, very good and the stock is now up $47.87. Here’s how the options performed. We bought 10 August 310 calls and 10 August 270 puts for about $25,000. The price for each was $12.60 for the calls and $12.30 for the puts. They are now worth $34 for the calls and $1.50 for the puts. So the total value is $34,000 for the calls and $1,500 for the puts or $35,500. Less $25,000, we are sitting on profits of $10,000 or 40% in less than 24 hours.

 We are selling the puts now to get the $1.50 for them before the go worthless. We are watching the calls and holding them but for those that placed the trade, we recommend getting out now and locking in profits.