Big FedEx trade sees limited upside
A large trader is showing a willingness to unload shares in FedEx by this spring.
optionMONSTER's market scanners show that 5,000 March 140 calls were sold in one print for $1.80 today. This is a new position, as there was no open interest in the strike before the trade appeared.
Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief upside will be limited through expiration. (See our Coaching section)
FDX is up 0.32 percent to $127.33 in afternoon trading but is down 17 percent in the last three months. The financial giant reported bullish results on Dec. 16 and is scheduled to announce its next quarterly numbers for after the close on March 16, two days before today's short calls expire.
Overall option volume was about average in FDX so far today.
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