Core Viewpoint - Baidu Inc, a leading AI company based in China, is experiencing significant stock price movement following its announcement to spin off its semiconductor unit, Kunlunxin, and list it in Hong Kong, with shares rising 12.6% to $147.14 [1] Group 1: Stock Performance - The stock is on track for its largest single-day percentage gain since February 2023, following a 55% gain in 2025, and is currently just below its two-year peak of $149.51 reached on October 6 [2] - Jefferies has raised its price target for Baidu from $159 to $181 while maintaining a "buy" rating after the spin-off announcement [1] Group 2: Options Trading Activity - Options traders are actively engaging with Baidu's stock, with 52,000 calls and 20,000 puts exchanged, which is nine times the stock's average daily options volume [3] - The most popular options include the January 2026 135-strike call and the weekly 1/2 150-strike call, with new positions being opened in the latter [3] Group 3: Options Premium - Baidu's options are currently reasonably priced, indicated by a Schaeffer's Volatility Index (SVI) of 40%, which ranks in the 25th percentile of its annual range [4]