FedEx Options Volume Runs Red-Hot During Slide

FDX is headed toward its worst day of the year

Sep 18, 2019 at 10:29 AM
facebook X logo linkedin

FedEx Corporation (NYSE:FDX) stock is spiraling this morning, after the shipping giant reported lower-than-expected fiscal first-quarter adjusted profit of $3.05 per share and revenue of $17.05 billion. FDX also cut its full-year profit forecast to a range of $11 to $13 per share, less than the consensus estimate, citing headwinds from the U.S.-China trade war, as well increasing competition from its former customer Amazon (AMZN).

Wall Street has been quick to chime in with a fresh round of bear notes. While Deutsche Bank joined at least three other brokerage firms in downgrading FDX stock to the equivalent of a "hold," J.P. Morgan Securities slashed its December 2020 price target for the second time this week, most recently to $146, and said it prefers rival UPS (UPS). At least seven other analysts cut their FDX price targets, too.

Against this backdrop, FDX stock is down 11.6% at $153.29, set for its biggest one-day decline since Dec. 19, when it plunged 12.2%. The shares had been rebounding off their late-August lows, but ran into resistance at their 200-day moving average in recent sessions. And thanks to today's drop, FedEx has erased its slim year-to-date lead.

With FedEx on the short-sale restricted list, options traders are in overdrive. Already today, around 29,000 puts and 25,000 calls have changed hands on FDX -- 22 times what's typically seen at this point, and volume pacing in the 100th annual percentile.

The September 150 put is most active, and it looks like new positions are being purchased here for a volume-weighted average price of $2.02. If this is the case, breakeven for the put buyers at this Friday's close, when the options expire, is $147.98 (strike less premium paid).


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI