Sell FedEx Calls Before Earnings Report, Newedge Says

Discussion in 'The Latest FedEx Headlines' started by cheryl, Dec 16, 2009.

  1. cheryl

    cheryl I started this. Staff Member

    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.