Call buyers look for FedEx to deliver
Traders are betting that FedEx will rally by Thanksgiving.
OptionMonster's monitoring system detected the purchase of more than 5,700 November 172.50 calls for $2.11 to $3.85 today. This represents fresh buying, as open interest in the strike was just 132 contracts before the session began.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
FDX is up 1.17 percent to $173.95 in afternoon trading and has risen 7 percent in the last three months. The global delivery giant is scheduled to report earnings after the close on Dec. 20.
Overall option volume in the name is twice its daily average so far today. Calls outnumber puts by a bullish 4-to-1 ratio.
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