Key points:
- The article is about some rich people who are betting that FedEx, a delivery company, will do well in the market. They buy options, which are a type of contract that lets them trade stocks at a certain price and time.
- These rich people bought more calls than puts, which means they expect FedEx's stock price to go up. Calls give them the right to buy stocks at a low price, while puts let them sell stocks at a high price.
- The article also shows a chart that tracks how many options trades and how much money is involved for different prices of FedEx's stock. This helps us see the range of possible prices that these rich people are aiming for.
Read from source...
1. The title is misleading and sensationalized. It implies that there is some hidden or secretive insight into what the "big money" is thinking about FedEx, when in reality it is just an analysis of options history and trades. A more accurate title would be something like "Analyzing Recent Options Trades for FedEx: What Do They Reveal?"
2. The article does not provide any context or background information on the companies or individuals mentioned in the options trades. For example, who are the financial giants that made a bullish move on FedEx? How significant are these investors and what is their track record? This would help readers understand the relevance and credibility of the analysis.
3. The article does not explain how it determined the "predicted price range" for FedEx based on the trading activity. What is the methodology behind this calculation? How accurate has this approach been in the past? Providing some transparency and evidence would strengthen the argument.
1. Buy FDX stock at its current market price ($180.56 as of writing) and hold it for the long term, given the bullish sentiment from financial giants and the predicted price range of $200.0 to $420.0. The potential return on investment (ROI) is approximately 37% to 129%.
2. Buy FDX April 2024 $250 call options at a strike price of $26.5 with a stop-loss order at $20. This trade recommendation takes advantage of the bullish sentiment and provides a leveraged exposure to the upside potential of FDX stock, with a limited risk of 31% (stop-loss order). The potential return on investment is approximately 164%.
3. Sell FDX May 2024 $350 call options at a strike price of $7. This trade recommendation generates a passive income stream from the current bullish sentiment, while also limiting the downside risk of owning FDX stock. The potential return on investment is approximately 18%.
Please note that these recommendations are based on the information provided in the article and may not reflect the actual market conditions or future events. Additionally, these trades involve risks and you should consult a professional financial advisor before executing any of them.