Playing the FedEx Earnings Report: Options Strategies for Traders

Dear Valued Subscribers,

Today, I would like to discuss the upcoming earnings report of FedEx Corporation (NYSE: FDX) and potential options strategies that traders can use to play this event.

FedEx, the multinational courier delivery services company, is set to release its Q3 2023 earnings report on March 16, 2023, after the market closes. The company's previous earnings report in December 2022 beat analysts' expectations, but the stock price dropped due to concerns over the global supply chain crisis.

Currently, the consensus estimate for FDX's Q3 2023 earnings is $2.64 per share, representing a 42.5% decrease year over year. However, The company's revenue is expected to increase by 12.3% year over year to $24.56 billion.

Given the current market conditions, playing the earnings report with options can be a good strategy. One potential play for traders bullish on FedEx is to purchase the FDX $202.5 Call 3/17 with an Estimated Premium* of $5.74 and there’s a 41% of likelihood that the option will end up in the money, based on our adjusted volatility forecast.

Another strategy for traders who are more cautious or bearish on FedEx is to purchase the FDX $200 Put 3/17 with an Estimated Premium* of $6.26 (the current premium is $5.65 which means the option is underpriced by 61 cents as of March 10) and there’s a 43% of likelihood that the option will end up in-the-money, based on our adjusted volatility forecast.

Thank you for reading our financial newsletter, and we hope you find this information useful in making informed investment decisions.

*Estimated Premium is the price at which the option should trade according to our model's adjusted volatility forecast.

Disclaimer: This financial newsletter is for informational purposes only and is not intended to provide investment advice or recommendations. The information contained in this newsletter is based on publicly available data and may not be accurate or complete. Options trading involves risk and is not suitable for all investors. Before making any investment decisions, you should conduct thorough research, analyze market trends, and monitor any relevant news about the company. We do not guarantee the accuracy, timeliness, or completeness of any information contained in this newsletter. We do not accept any liability for any losses or damages that may arise from any reliance on the information contained in this newsletter. Options trading should be approached with caution and a thorough understanding of the risks involved.