8:30pm (EST)
We wanted to do a quick update on FedEx (FDX, $91.59, up $4.09) following today's 4% pop. We have recommended options on FedEx in the past and it is a stock we watch closely. We were going to profile an option trade last week but we didn't want to go long in front of a holiday and before the weekend. We also have a number of open trade recommendations so we are also at our max comfort level as we would like to close a few before opening new ones for our subscribers.
Shares of FedEx have been establishing strong support at $85-$86 over the past few weeks and we felt it was a stock we could play heading into the Christmas season.
We knew a lot of focus would be on Amazon.com (AMZN, $179.49, up $2.29) and possibly eBay (EBAY, $30.23, down $0.92) but we thought those trades might get "crowded" so we wanted to get into FedEx because they will doing a lot of the shipping over the holidays and we expect business to be brisk.
We mentioned all three stocks in our daily update today but FedEx is our favorite over the short-term. The 52-week high is $97.75 and we watched the December 90 calls (FDX101218C00090000, $3.45, up $2.07) open this morning at $1.71. In our 12:30 update the options were trading for a little over $2 and added another 50% by the closing bell.
Although it may be a little late to get into the December options, we also like the January 100 calls (FDX110122C00100000, $1.00, up $0.65) which soared 185% today after opening at 42 cents. We have these options listed on our Watch List section but it is not an official recommendation (yet).
Another reason we like the January options is because they provide more time for this trade to play out. The December options expire in less than 3 weeks before they expire but the January options have over 50 days before expiration.
We think there is still more upside for shares of FedEx and we went on record today saying we think shares can hit $100 over the short-term. If so, these options could easily double. If you can get into the January 100 calls for under $1.25 on Tuesday morning, pull the trigger.
Disclosure: No positions in FDX as of this writing
We wanted to do a quick update on FedEx (FDX, $91.59, up $4.09) following today's 4% pop. We have recommended options on FedEx in the past and it is a stock we watch closely. We were going to profile an option trade last week but we didn't want to go long in front of a holiday and before the weekend. We also have a number of open trade recommendations so we are also at our max comfort level as we would like to close a few before opening new ones for our subscribers.
Shares of FedEx have been establishing strong support at $85-$86 over the past few weeks and we felt it was a stock we could play heading into the Christmas season.
We knew a lot of focus would be on Amazon.com (AMZN, $179.49, up $2.29) and possibly eBay (EBAY, $30.23, down $0.92) but we thought those trades might get "crowded" so we wanted to get into FedEx because they will doing a lot of the shipping over the holidays and we expect business to be brisk.
We mentioned all three stocks in our daily update today but FedEx is our favorite over the short-term. The 52-week high is $97.75 and we watched the December 90 calls (FDX101218C00090000, $3.45, up $2.07) open this morning at $1.71. In our 12:30 update the options were trading for a little over $2 and added another 50% by the closing bell.
Although it may be a little late to get into the December options, we also like the January 100 calls (FDX110122C00100000, $1.00, up $0.65) which soared 185% today after opening at 42 cents. We have these options listed on our Watch List section but it is not an official recommendation (yet).
Another reason we like the January options is because they provide more time for this trade to play out. The December options expire in less than 3 weeks before they expire but the January options have over 50 days before expiration.
We think there is still more upside for shares of FedEx and we went on record today saying we think shares can hit $100 over the short-term. If so, these options could easily double. If you can get into the January 100 calls for under $1.25 on Tuesday morning, pull the trigger.
Disclosure: No positions in FDX as of this writing