On March 25th I posted that I deemed BIDU to be over-bought and in an unsustainable uptrend. As mentioned on the post I sold several JUN 2010 calls with an 800 strike for $4 premium per share ($400/contract). After a period of time where the prices still kept increasing on the uptrend line the break came on Friday after the market reacted to the negative news on Goldman Sachs. As of right now the stock has declined another $29 (4.6%) and it's only mid-day. The call options are trading at $1.55/share.I will not buy them back yet as I think this dip will be followed by further downside. Even if the downside is not material it has delayed the uptrend enough that $800/share by June expiry is still far away. I'm looking to either let them expire or buy back at close to zero to close the position.
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