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Option Brief: Baidu Inc (ADR) (NASDAQ:BIDU) calls traded at a slightly faster-than-usual pace on Friday. Most active among non-expiring contracts was the weekly 6/27 180-strike call. More than 2,800 contracts changed hands here, the majority of which were bought to open.
By purchasing the calls, Friday's traders anticipate BIDU shares will muscle north of $180 -- from their current perch at $176.15 -- by the close this Friday, when the weekly options expire. As with all "vanilla" long calls, potential profits are theoretically infinite -- limited only by the price of the underlying -- while the maximum potential loss is the initial cash outlay, should Baidu Inc (ADR) (NASDAQ:BIDU) end the week pinned below the strike.