Options Traders Swarm FedEx Stock After Quarterly Miss

The company also slashed its full-year revenue outlook

Digital Content Manager
Dec 20, 2023 at 10:23 AM
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FedEx Corp (NYSE:FDX) reported worse-than-expected second-quarter earnings of $3.99 per share yesterday, as well as a revenue miss. The delivery company also slashed its full-year revenue forecast amid macroeconomic headwinds and lower Postal Service demand. At last check, FDX was down 10.5% at $250.46, dragging United Parcel Service (UPS) stock lower too.

No fewer than nine analysts cut their price targets in response, including Wells Fargo to $265 from $280. Despite today's flurry of bear notes, the brokerage bunch still leans firmly bullish toward FedEx stock, with 15 of the 23 in question sporting a "buy" or better rating.

Options traders are also optimistic, per the security's 50-day call/put volume ratio of 1.35 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands in the 92nd percentile of annual readings.

Drilling down to today's options activity, 57,000 calls and 55,000 puts have been traded so far, which is 29 times the intraday average. Most popular is the weekly 12/22 245-strike put, where positions are being opened. 

FedEx stock is pivoting lower from its Dec. 18, two-year high of $285.45, and losing support from its 20-day moving average, which had been in place since early November. Shares are also eyeing their worst single-day percentage drop since September 2022, but still boast a 45% year-to-date lead. 

 

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