FDX at support? Mar/21/2013

FDX, FedEx Corporation got hammered after the earnings. This trade below can be tricky to handle trying to go against the momentum. Looking at 2 year chart, we are in the range of previous highs. April two standard deviation move also brings us to the same range. Looking at those two things, I initiated the trade given below.

I also like 92.5 or 90 put calender (monthlies) in this scenario, where we know the momentum is to the downside but we might chop around this range for a few days/weeks before possibly heading down more in the coming months. This way you give yourself some time to decide what to do with the may put while you eat the April premium. I got the 90 put calender.

FDX Weekly

FedEx Corporation (NYSE:FDX) sell put vertical:  
Sell 1X $95 monthy put 
Buy 1X $92.5 monthly put
(Credit $0.8) 


*Please do your own research before buying any stock listed here. Disclaimer.
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