4 Trade Ideas for FedEx: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

FedEx, $FDX, comes into the week in a short consolidation at resistance after moving up off the 200 day SMA. The Bollinger Bands® are open higher to allow a move. The RSI is rising in the bullish zone with the MACD positive and rising. There is resistance at 257.50 and 260 then 264 and 270 before looking back to 2021 to find it at 276 and 281 then 287 and 295 before 300. There is support at 254 and 248.50 then 241. Short interest is low at 1.3%. The stock pays a dividend with an annual yield of 1.97% and has traded ex-dividend since September 8th.

The company is expected to report earnings next on December 19th. The December options chain shows biggest open interest at the 240 put strike and the 250 call strike. The December 22 Expiry, covering the earnings report, has little open interest at this point. The January chain has big open interest at from 250 down past 180 on the put side and builds from 190 to a peak at 250 then tails to 320 on the call side.

FedEx, Ticker: $FDX

Trade Idea 1: Buy the stock on a move over 257.50 with a stop at 248.50.

Trade Idea 2: Buy the stock on a move over 257.50 and add a December 22 Expiry 255/245 Put Spread ($4.10) while selling the December 22 Expiry 270 Call ($3.80).

Trade Idea 3: Buy the December/January 270 Call Calendar ($4.55) while selling the December 22 Expiry 240 Put ($3.80).

Trade Idea 4: Buy the January 240/260/280 Call Spread Risk Reversal ($1.70).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the November Options Expiration in the books, saw equity markets showed strength with a tech and large caps printing a third weekly move to the upside and were now joined by the small caps.

Elsewhere look for Gold to continue its short term move higher while Crude Oil its short term move to the down side. The US Dollar Index shifted to a pullback that looks to continue while US Treasuries bounce in their downtrend. The Shanghai Composite looks to continue its bounce in a downtrend as well while Emerging Markets consolidate.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. The charts of the large caps and tech look strong, especially on the longer timeframe. On the shorter timeframe the QQQ is about to shift to an intermediate term trend higher and the SPY is not far behind. The IWM remains mired in consolidation despite a fabulous week for small caps. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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