Sarah Wasserman (swasserman@sir-inc.com) FedEx Corporation (FDX) is currently in the midst of its biggest day of deliveries in the company's history. An estimated 16 million packages will be handled by FDX today -- a 13% increase from last year's busiest day. FDX is prepared to handle today's record volume, with executive T. Michael Glenn explaining, "FedEx has been preparing for the seasonal surge of packages for almost a year and we've leveraged our decades of logistical expertise to ensure FedEx has all the right assets in place to handle our busiest day in history."
Call players have had FDX on their radar today, with roughly 15,000 contracts exchanged -- quadruple the delivery diva's expected single-session call volume.
In fact, it appears that one call player has targeted FDX for a long call spread today. Late this morning, 339 December 95 calls, marked "spread," changed hands at the ask price, while 339 December 100 calls, also designated "spread," crossed at the bid price. By initiating this long call spread, the trader is ultimately betting that FDX will rally above the $95 level, stopping its ascent right at, or just before, the $100 level, by the time these options expire -- which is after the close this Friday, Dec. 17.
Today's spread strategist may be counting on an earnings-related boost for the shares. FDX is slated to report second-quarter earnings on Dec. 16, with analysts anticipating a profit of $1.31 per shares. However, FDX has a fairly spotty history in the earnings spotlight; in the past four quarters, the company has twice surpassed, and twice met, analysts' expectations.
At last check, FDX was hovering around $94.99.
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