FedEx (FDX) – Trouble Ahead of Earnings – June 24th, 2019

Bearish – FDX $165.35 – Transport

The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.

On Friday’s Options Action, the crew analyzed the performance of FedEx. FedEx is currently trading near its Christmas lows despite the markets near all-time highs. Coupled with the transports sector showing poor relative strength and FedEx’s headwinds with the Amazon breakup suggests possible poor guidance on earnings. Expecting FDX to trade lower on earnings, Michael Khouw suggests selling a July 170/175 Call Vertical for $1.90 Credit. As of Friday’s close, these calls were trading at a $1.69 Credit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: FDX OptionsAction Video

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