Baidu Inc. (NASDAQ: BIDU) is one of China’s leading technology giants, often referred to as the “Google of China.” While primarily known for its dominant search engine, Baidu has aggressively expanded into artificial intelligence (AI), cloud computing, and autonomous driving. But how has BIDU performed over the last five years, and what are the best options strategies for both short-term and long-term traders?

Baidu’s 5-Year Performance Overview (2020-2025)

Stock Price Performance

• March 2020: ~$90 (pandemic sell-off)
• February 2021: $354 (All-time high driven by AI and tech boom)
• 2022-2023: Declined to ~$110 amid China’s regulatory crackdown and economic slowdown
• 2024-2025: Rebounded to $145-$165 range as AI and cloud investments gain traction

Baidu has had a volatile five years, peaking in early 2021 before dropping sharply due to China’s regulatory tightening on tech companies. However, its AI and cloud computing divisions have helped stabilize the business, leading to a gradual recovery.

Financial Highlights

• Revenue (2024): $37.3 billion (+9.5% YoY)
• Net Income: $6.2 billion (+12% YoY)
• AI & Cloud Growth: 21% CAGR (driven by Baidu Cloud and AI models)
• Self-Driving Tech: Apollo Go has now completed over 4 million rides

Baidu’s fundamentals remain strong, but macro risks, such as China’s economy and government regulations, remain key concerns for investors.

Short-Term Options Trading Strategies for BIDU

Baidu’s stock tends to be highly volatile, making it attractive for options traders looking to take advantage of price swings.

1. Short Straddle (For High Volatility Traders)

• Setup: Sell an at-the-money call and put at the same strike price.
• Objective: Profit from time decay if BIDU stays within a range.
• Risk: Unlimited downside/upside if the stock moves sharply.
• Best Case Scenario: BIDU stays within $150-$165 range and both options expire worthless.

2. Bull Call Spread (For Moderately Bullish Traders)

• Setup: Buy a call at $155, sell a call at $165 (same expiration).
• Objective: Lower the cost of the trade while maintaining upside exposure.
• Best Case Scenario: BIDU closes near $165, maximizing the spread’s profit potential.

3. Cash-Secured Puts (For Buying BIDU at a Discount)

• Setup: Sell a $145 put, collect premium while waiting for a lower entry point.
• Objective: Earn premium or get assigned BIDU shares at a discount.
• Best Case Scenario: BIDU stays above $145, and you keep the premium.

Long-Term Options Trading Strategies for BIDU

For investors with a long-term bullish outlook on Baidu, options can be used to gain exposure while managing risk.

1. LEAPS (Long-Term Call Options on Growth Potential)

• Setup: Buy a Jan 2026 $150 call for deep upside exposure.
• Objective: Profit from a long-term uptrend in BIDU’s AI and cloud businesses.
• Risk: If BIDU stagnates, the option could expire worthless.

2. Covered Calls (For Income Generation on Holdings)

• Setup: Buy 100 shares of BIDU and sell monthly covered calls at $170 strike.
• Objective: Generate income while holding long-term shares.
• Best Case Scenario: Stock rises slowly, and you keep collecting premiums.

3. Ratio Call Spread (For Limited Upside with Minimal Cost)

• Setup: Buy one long call at $160, sell two calls at $175.
• Objective: Cheap exposure to upside movement.
• Risk: If BIDU skyrockets beyond $175, risk increases.

Final Thoughts: Is BIDU a Buy?

Baidu has rebounded from China’s regulatory crackdowns and is now positioned for AI-driven growth. The company remains a leader in search, AI, and self-driving technology, but geopolitical risks and economic slowdowns in China are ongoing concerns.

Best Approach for Traders & Investors:

✔ Short-term traders: Use straddles or bull call spreads for volatility.
✔ Long-term investors: Consider LEAPS or cash-secured puts for exposure.
✔ Income-focused traders: Sell covered calls for monthly premiums.

📢 What’s your BIDU trading strategy? Let’s discuss in the comments!

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before trading options or stocks.