Sell FedEx Calls Before Earnings Report, Newedge Says - Bloomberg
Investors should sell FedEx Corp. call options before the package-delivery company reports quarterly results tomorrow and use the proceeds to buy United Parcel Service Inc. contracts, according to Newedge Group.
Shares of Memphis, Tennessee-based FedEx, the world’s largest cargo airline, probably won’t move much following earnings because the company gave a forecast for the period on Dec. 7, said Daniel Roy, an equity derivatives strategist at Newedge. Options tend to decline in value when volatility eases.
Investors should sell FedEx Corp. call options before the package-delivery company reports quarterly results tomorrow and use the proceeds to buy United Parcel Service Inc. contracts, according to Newedge Group.
Shares of Memphis, Tennessee-based FedEx, the world’s largest cargo airline, probably won’t move much following earnings because the company gave a forecast for the period on Dec. 7, said Daniel Roy, an equity derivatives strategist at Newedge. Options tend to decline in value when volatility eases.
