There has been an interesting development in relation to FedEx (NYSE: FDX) as a wealthy individual or institution has taken a bearish stance on the company. This significant position was detected through publicly available options history, indicating that someone may have insider knowledge or insights into an impending event.
Recently there were 12 sizeable options trades for FedEx, which is an unusual occurrence. The sentiment among these high-value traders appears to be divided, with 41% adopting a bullish outlook and 58% leaning towards a bearish perspective. Among the uncovered options, there was one put option worth $109,000 and eleven call options valued at $598,615.
Based on the volume and open interest of these contracts, it seems that these market participants have been targeting a price range between $200.0 and $240.0 for FedEx over the past three months. The liquidity and interest in FedEx options today show a mean open interest of 907.0 and a total volume of 797.00.
The following chart illustrates the development of volume and open interest for call and put options on FedEx within the $200.0 to $240.0 strike price range over the past 30 days.
Looking at the current status of FedEx, the stock is trading at $251.13, reflecting a 1.4% increase with a volume of 600,025. However, RSI indicators suggest that the stock may be overbought. The next earnings report is expected in 75 days.
In terms of expert opinions, Stifel maintains a Buy rating with a price target of $259, while Stephens & Co. downgraded their action to Overweight, setting a price target of $290. Credit Suisse continues to maintain an Outperform rating with a price target of $265, and Argus Research maintains a Buy rating with a target of $260. JP Morgan, on the other hand, maintains a Neutral rating with a price target of $251.
Options trading carries higher risk compared to trading the underlying stock, but it also offers greater profit potential. Serious options traders mitigate these risks by staying informed, implementing scaling strategies, using multiple indicators, and closely monitoring market trends.