Will FedEx Stock Surge Again After Earnings?

Shipping giant FedEx Corporation (NYSE:FDX) will report fiscal first-quarter results after the close on Thursday, Sept. 19. Post-earnings reactions over the past two years were mostly positive, with five of the last eight yielding positive returns, including 15.5% and 7.4% pops in June and March, respectively. FDX averaged a 7.1% over that period, regardless of direction, but this time the options pits are pricing in a larger 9.1% swing.

Digging deeper, after the company's June report FedEx stock soared to a three-year high of $313.84. Since then, the $300 level has moved in as resistance, rejecting a late August rally. FDX was last seen down 1.2% to trade at $280.58 and is pacing for its fifth loss in the last seven sessions, though it still sports a 10.9% year-to-date lead.

Sentiment among FedEx options players has been bearish of late. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock sports a 10-day put/call volume ratio of 1.20, which ranks higher than 91% of readings from the past year. Echoing this, FDX's Schaeffer's put/call open interest ratio (SOIR) of 1.16 stands higher than 87% of annual readings.