FedEx (FDX) Offering Possible 18.84% Return Over the Next 23 Calendar Days

FedEx's most recent trend suggests a bearish bias. One trading opportunity on FedEx is a Bear Call Spread using a strike $270.00 short call and a strike $290.00 long call offers a potential 18.84% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $270.00 by expiration. The full premium credit of $3.17 would be kept by the premium seller. The risk of $16.83 would be incurred if the stock rose above the $290.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for FedEx is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for FedEx is bearish.

The RSI indicator is at 67.49 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for FedEx

PPL Corporation Just Missed Earnings – But Analysts Have Updated Their Models
Mon, 22 Feb 2021 04:54:28 +0000
It's shaping up to be a tough period for PPL Corporation ( NYSE:PPL ), which a week ago released some disappointing…

More Retail Earnings, More Blaming Shipping Costs For Miss
Thu, 18 Feb 2021 19:49:18 +0000
This is an excerpt from Monday's (2/8) Point of Sale retail supply chain newsletter sponsored by ArcBest. The Container Store's (NYSE: TCS) most recent earnings call details the reality of shifting to a greater mix of e-commerce sales at a time when transportation capacity is extremely tight. To manage limited capacity, logistics providers have implemented surcharges and placed limits on its largest customers. These additional costs are putting significant strain on retailer bottom lines at a time when many are dealing with major top line declines. Fortunately for TCS, the company is not dealing with major sales declines. In fact, the company rode COVID-induced in-home spending to the tune of 21% revenue growth yoy this quarter. The cost catalyst for TCS was much of that in-home spending was done in the home. Online sales surged 98% yoy in the third quarter of fiscal 2020. “We certainly saw headwinds related to the higher mix of online sales, incurring a lot more in shipping costs than we originally expected,” Chief Financial Officer Jeff Miller said. “And the third-party surcharges we are experiencing on freight were much more impactful than we originally thought.” TCS didn't say what logistics provider it was using, but the surcharge environment that it saw dwindle its margin in the last quarter was referred to by FedEx (NYSE: FDX) as the “new normal” last July. Additionally, FDX announced new surcharges last month that I wrote “felt permanent”. UPS (NYSE: UPS) has imposed similar surcharges. TCS gross margin decreased 40 basis points to 57.2%, primarily due to increased shipping costs as a result of a higher mix of online sales combined with incremental shipping surcharges instituted by third party carriers. The company said the margin compression would have been even worse if it hadn't benefited from lower inventories and less promotional activity. “We're seeing [freight pressure], both in shipping costs and the cost to get our goods to us,” Miller said. The pressure isn't going anywhere any time soon. From a truckload perspective, the market remains extremely active with freight volumes up 18% year-over-year and historically tight capacity. Carriers are rejecting 1-in-5 contracted tenders which is keeping upward pressure on spot rates. The market has normalized since the Christmas disruption with rejection rates and spot rates declining in lockstep, but the market is far from normal. Despite falling 15% since Christmas, spot rates remain up 25% yoy. (SONAR: TSTOPVRPM.USA (Blue); OTRI.USA (Green)) From a parcel standpoint, the major carriers are still backed up to epic proportions. Consumer spending continues to impress (up 5.3% yoy in latest week), e-commerce demand is not waning, and parcel networks are still working through mountains of holiday returns. In some respects, just getting product to a point at which 3PLs can slap a surcharge on it is a major win. That would mean the product made it through a port facility, which is something not every retailer can boast (ask PTON). Final Thoughts. The Container Store is not the first nor the last retailer to feel the strain of elevated shipping costs. Logistics costs for online retailers are on average double those of store-focused retailers. There is a reason every major retailer is solidifying its omnichannel offerings and it's not only to capture online sales. Like what you read? Sign up for Point of Sale for more retail earnings, e-commerce, and retail supply chain news and insights: https://web.freightwaves.com/point-of-sale See more from BenzingaClick here for options trades from BenzingaJ.B. Hunt Partners With Google On Technology, Product DevelopmentDaimler Trucks US Full-year Sales Fall 30% As Independence Nears© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

E-commerce is on a collision course with climate change
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The winter storms in Texas and many US states highlights how the rising popularity of e-commerce expose logistics networks to extreme weather events..

Bill Gates’ Most Recent Investments
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In this article we discuss Bill Gates’ Most Recent Investments. If you want to skip our detailed discussion of the history and investments of the Bill & Melinda Gates Foundation Trust, go directly to Bill Gates’ 5 Most Recent Investments. The Bill & Melinda Gates Foundation was launched in 2000 by the American billionaire, philanthropist […]

PPL Corp. to Host Earnings Call
Thu, 18 Feb 2021 13:45:00 +0000
NEW YORK, NY / ACCESSWIRE / February 18, 2021 / PPL Corp. (FRA:PP9) will be discussing their earnings results in their 2020 Fourth Quarter Earnings call to be held on February 18, 2021 at 11:00 AM Eastern Time.

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