IQ | Long | Undervalued Chinese Media Rebound Play | (April 9)IQ | Long | Undervalued Chinese Media Rebound Play | (April 9, 2025)
1️⃣ Insight Summary:
iQIYI, a leading Chinese entertainment platform, is showing signs of accumulation at historical support levels. Despite a long-term downtrend, both the fundamentals and technicals now hint at a potential strong upside move.
2️⃣ Trade Parameters:
Bias: Long
Entry Zone: Around $1.60 – $1.74 (post-liquidity sweep zone from 2022)
Stop Loss: Below $1.50 (key invalidation and structural failure)
TP1: $2.53
TP2: $3.33
TP3: $4.23
TP4: $5.64
Final TP: $6.46 – Potential extended target: $10.35
Risk/Reward Ratio: ~1:22 based on the chart setup
Status: Long setup in progress with active risk management and staged profit-taking
3️⃣ Key Notes:
✅ Strong buy-side reaction after taking out 2022 liquidity
✅ Price holding despite visible sell pressure — signs of absorption
✅ Fundamentally undervalued for a growing Chinese entertainment brand
✅ Past cycles from this level have triggered multi-month rallies
✅ Clear interest from institutions and steady volume accumulation
❌ Everything below $1.50 is a full invalidation; any break lower voids the current long bias
📈 Setup is structured for a long-term swing, but partial profits help lock in gains during the move
4️⃣ Follow-up Note:
Monitoring closely. Will consider adding if a strong reclaim happens above key support with confirmation. Updates will follow as targets are approached.
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Disclaimer: This is not financial advice. Always conduct your own research. This content may include enhancements made using AI.
IQ trade ideas
IQ- a growth stock with 7 P/E trading at book valueIm bulllish IQ stock, a top streaming service in China, and also downloadable in USA.
7.80 forward P/E, cheap. most growers are trading in the 30 PE range and some in the 100 PE.
Stock is trading below tangible book value, so you couldnt make this company for cheaper in theory. Its roughly trading at liquidation value (market prices can fluctuate for their assets).
25% growth expected per year, should double earnings every 3 years.
China is in downturn, real estate depression. Im buying now before they have good times.
Be safe. do your own homework. Listen to Warren Buffett and Peter Lynch.
Cheers!
IQ a buy before earnings? Let's see iQIYI has headquarters in Haidan District, China. The firm distinguishes itself in the online entertainment industry by its technology platform powered by advanced AI, big data analytics and other core proprietary technologies. The website is cool with many interesting titles.
In 2023 had a low of $1.65. Trading at $2.20 today with earnings released before the market opens on Feb 18th 2025. This stock makes money and hits on earnings yet continues to be trolled by the mighty USD. After DeepSeek rocked Wall street, I am shocked IQ has not gained traction. Its revenue are stagnate but surprises on earnings. The price action has consolidated and entered into a squeeze pattern. I like it!
There are options on IQ stonk! Excellent. The expected move for Feb 25th, 2025 options is .27
A bullish covered call buy to open 100 shares at 2.20 and buy to open Feb 21 1.5 Put would cost me a buying power effect of 2.21 with unlimited max profit and a max loss of $71. I like the limited risk vs owning this stock. It is risky and will only work if earnings include must have AI.
Have no position here but this chart caught my attention. Trade safe and not financial advice.
Don't Ignore this Warren Buffett Metric - TBVWhy would anyone ignore a metric one of the richest persons in the world uses. Tangible book value is a key metric Warren Buffett uses for looking at companies as well as judging his own investment vehicles (Berkshire Hathaway) success.
Im focused on NASDAQ:IQ IQ Iqiyi stock, and Im emboldened because of IQ's tangible book value. Its a potential grower for the next years and being at low TBV gives me confidence that its a good value now at around the 2 dollar range.
I also show in this video 2 other example cases ( NYSE:GME GME and NYSE:XOM XOM) where TBV was useful to gauge value during peak fear and overselling periods.
Hope you enjoy!
IQ.Naz iQIYI, Inc. Prints a Cup & Handle Pattern.iQIYI, Inc. The Chinese Netflix has printed a Cup & Handle Pattern which is a Bullish formation.
The Chart Study should be self explanatory.
You can also drag the chart to see my Projection Target Range.
As always, please get a few outside Expert's Advice before taking Trade or Investment Decisions.
Should you appreciate my Chart Studies, Smash That Rocket Boost Button. It's Just a Click away.
Regards Graham.
Ready for a long trade?I've placed a BUY STOP order above the last trading day's high. The reasons :
If the last high gets broken to the upside, I expect a short-term turnaround of the price movement.
The simple moving averages should do a bullish crossover.
the privce could rise until the last high zone between 3.00 and 3.38 USD. With this the chart could form a cup & handle formation .
Bullish IQ , online video streaming in chinaIQ has been drowned and punished for a light q2 june earning report.
seasonally/historically q2 has been the lightest quarter for past 3 years.
the best quarters are toward the winter holidays.
Current valuation is very attractive low PE, low price to sales.
Balance sheet has some debt, so its not excessively cheap in the balance sheet. its all about the earnings growth potential.
This year forward earnings is expected to be .24 cents, which is fantastic for a once 2.00 stock recently. 5 year potential eps is over 1.00, so for me this is a keep for long time.
Hard to say what a growing online streamer could be worth when bullishness kicks in and future growth starts to be anticipated. 20 pe? 30 pe? one can never predict this. All we control is buying value when we get a lot of weight for money paid.
RISKs- continued deflation in china, more competition. Currency devaluation and geopolitics still a major cloud. Yuan is rising now, but if real estate remains a burden, currency devaluation and increased stimulus might hurt the currency and total net returns to foreign investors.
Not advice for you, but I like the stock for me. Stands out on my ranking sheets.
IQ iQiyi streaming platform in china could do well over 5 years3.44$ stock seems to be a deep value play. Tangible book is near at 1.85.
Already earning .41 for 2023 and expected to earn .49 in 2024, IQ has a forward earnings yield of over 14%. In addition to low Price to earnings, the growth potential expected is over 20% to as 38%.
Plotting out the growth to 2029 and using optimistic growth stock multiples, a stock like IQ could be worth between 47 and 94 dollars using PEG (price to earning growth) valuations of 1x growth and 2x growth.
That being said, thats the rosy optimistic case, there is also a very bad bear case that recognizes china is in a deflationary real estate down spiral and also surrounded by geopolitical risk. Some economists mention potential currency devaluation to factor the deflation issues in real estate overbuild.
This is a high risk stock. I will use small position sizing and use in the money call options to reduce risk. Controlling the risk at entry and making sure the position is small is how catastrophic damage to accounts is prevented.
Another way to play IQ (oversold)IQ has been oversold for 3 days now. I haven't pulled the trigger because I felt like it might fall farther and there are other opportunities in other stocks coming. I'm still not 100% convinced it's done falling, but there's a way to play this that I might use. Selling cash-secured puts.
This works especially well on low priced stocks for most people because of the capital requirement of having to set aside enough for 100 shares. In this case, it would only be a few hundred dollars with the stock at 3.50.
For example, let's say I can sell a July 26 3.50 call for $10 and get two ways to "win" the trade.
1) the stock price rises. That's my fundamental premise for getting into the trade anyway. I'm expecting this outcome by going long. With this, I still have unlimited profit potential here plus the extra 3% from selling the option. Since it's already 3 days oversold, it's even more probable that a rise will happen in this upcoming week. I can also buy back the option for less than I sold it for if the stock rises significantly above 3.5 at any point during the week.
2) If the stock price falls less than .10 this week I'll still make money. I'll get assigned the stock at let's say 3.45 hypothetically (I'd have to pay 3.50 for it) but since I sold the option for .10, I still profit all the way to 3.40. Again, I'd probably hold from 3.50 to 3.40 anyway given how I do my trades, I'd just get the first .10 fall in the stock price for free essentially.
There are two ways to "lose" here, but I'd argue I'm still better off than buying the stock straight up.
1) If the stock price falls below 3.40, then I'm stuck for the difference. If it falls to 3.30, I still have to pay 3.50 on July 26th. However, the $10 I sold the option for reduces my cost basis to 3.40. I'm still down .10 per share but remember, I WAS GOING TO BUY THE STOCK AT 3.50 ANYWAY. So had I done that, I'd be down .20 right now instead of just .10
2) The stock drops a LOT. This is the "nightmare" scenario because the put option locks me into buying the stock unless I buy the option back at what is now a MUCH higher price than I sold it for. Again though, if I was going to be holding it anyway, the option premium offsets some of the loss and I'm out less than buying the stock straight up. This scenario is why I ALWAYS use weekly options, since that lowers the risk. The huge drop would have to happen THIS WEEK to hurt me. Also, I sell options as far out of the money as is reasonable so I'm not hurt by the initial loss AND in any given week it makes it harder to reach that level.
In this case, the next lowest strike price is 3.00 but I'd only get maybe .02 (x100) and it isn't worth doing for that so I'd go with the at the money 3.50 instead.
Best case scenario would always be I sell a put and the stock goes up and I keep the money, reducing my cost basis and automatically improving my return on the trade as a result. Choosing the right strike and expiration (far out of the money and short expiration) makes that more likely. But again, I only do this on stocks I'm willing to buy anyway and it's best for volatile stocks since the premiums on the options are higher because of that volatility.
I probably won't make this trade on IQ simply because the option premium isn't quite fat enough to warrant it for me. But this same technique is applicable to any overbought stock that sells weekly options, it just isn't always worth it. I haven't used it recently, though I could and should have, and may still, on IREN.
It's a much more volatile stock with juicier options as a result. With IREN at the close on Friday, I could have sold a $9 strike put that expires in 5 trading days and make 1.5% on my money. For me to lose anything, the stock would have to fall more than 20% in one week. Statistically, there is about a 90% chance that it won't. If it doesn't, I keep the 1.5%. If it does drop that far, I'd be buying more anyway unless the reason it dropped was truly catastrophic.
Please note: When a stock is already oversold is the ONLY time I'd ever use this technique. Selling puts when a stock is overbought is a great way to get poor quickly, for example.
For simplicity's sake, I almost always just buy the stock straight up. Option spreads and commissions eat into your profits and makes closing positions early more challenging. It's just more complicated. This is just another way I sometimes like to play it instead when the option premium makes it worth the effort.
I don't love IQ here, but I don't LOVE any stock in a downtrend. I just think there's short term opportunity here. I probably won't actually trade it to keep powder dry for better opportunities.
This is all instructional and opinion for entertainment purposes, not investment advice. Be smart and only take the trades you can be personally responsible for the outcomes of. Have a good weekend!
IQ the netflix of china finally generating cashflowWhile we still dont know the future of China and all its risks, these bargain stocks keep tempting us investors who follow valuations. IQ (iqiyi) is a online video streamer subscription model and also offers a live streaming platform in china. Used to be a part of Baidu, but is no publicly traded on its own. "iQIYI is currently one of the largest online video sites in the world, with nearly 6 billion hours spent on its service each month and over 500 million monthly active users."
The stock has some debt, but is generating healthy casfhlow and earnings now, sporting a low PE. Cheap is good, but growing is better, which IQ is. 20% plus growth rate is attractive isnt it. However, stock has been clobbered as investors have chosen fear and to protect their capital.
I dont know the future and dont know what will happen with China geopoliltics or economy near term, but will keep an eye on this one and may consider risk managed trades when opportune.
IQ iQIYI Options Ahead of EarningsIf you haven`t sold IQ ahead of the previous earnings:
Then analyzing the options chain and the chart patterns of IQ iQIYI prior to the earnings report this week,
I would consider purchasing the 5usd strike price at the money Calls with
an expiration date of 2024-1-19,
for a premium of approximately $0.51.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
IQ iQIYI Options Ahead of EarningsIf you haven`t bought the speculative Double Top here:
Then analyzing the options chain and the chart patterns of IQ iQIYI prior to the earnings report this week,
I would consider purchasing the 5.50usd strike price in the money Puts with
an expiration date of 2023-9-29,
for a premium of approximately $0.60.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
IQ in the zone of supporta Chinese tech stock which broke out if's downtrend earlier this year. This area and slightly lower should be support. We're also at daily and weekly BB support and weekly 100ma support (not pictured).
RSI is hinting that the stock is very oversold and could see significant upside to 10 dollars or more.
Keep in mind this may also just be part of a correction in which case the red path is more likely. Either way I think a tradable bounce is coming.
See my china posts below - good luck!
IQ 1W Short Termtest
QIYI, Inc. engages in the provision of internet video streaming services. It operates a smart television streaming service and an entertainment-based social media platform, iQIYI Paopao. The firm also also distribute video content through third-party platforms. The company was founded by Yu Gong in November 2009 and is headquartered in Haidan District, China.
IQ iQIYI Options Ahead of EarningsLooking at the IQ iQIYI options chain ahead of earnings , I would buy the $7.00 strike price Calls with
2023-2-24 expiration date for about
$0.49 premium.
If the options turn out to be profitable Before the earnings release, I would sell at least 50%.
Looking forward to read your opinion about it.