FedEx (FDX) options are seeing three times normal volume. The company delivers a profit report tomorrow morning before the opening bell. Trading is cautious, with 11,000 puts and 6,626 calls trading today. Sentiment is 53 percent bearish and 24 percent bullish. Fourteen analysts offer coverage and have quarterly estimates ranging from $1.15 to $1.31. Consensus is $1.21. In the previous quarter (reported 12/20), FDX beat by four cents and also explained that ?While we have indexed fuel surcharges in place, they cannot keep pace in the short-term with rapidly rising fuel prices. We are implementing cost-containment actions to manage near-term expenditures and have reduced our capital spending forecast. We will continue, however, to invest in strategic projects related to our long-term growth plans.” The stock is down 8.3 percent since that time.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.