Whales are people who have a lot of money and they buy or sell things called stocks. Stocks are small parts of big companies that you can own. Sometimes whales want to buy stocks when the price is low and sell them when the price is high, because they make more money that way. Other times, they think the price will go down and they sell the stocks when the price is high and buy them back when the price is lower. That's called being bearish.
In this article, people are looking at what whales are doing with a company called FedEx. They found out that most of the whales think FedEx will go down in price, so they are selling more stocks than buying. The whales have been watching FedEx's price between $220 and $280 for the past 3 months.
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1. The title is misleading and clickbait-like. It implies that whales are making significant moves with FDX, but the article only mentions 13 trades detected in options history. This number is too small to draw any conclusions about the whales' intentions or market sentiment.
2. The article uses vague terms like "bearish" and "bullish" without providing clear definitions or criteria for determining them. These terms are subjective and may mean different things to different readers, investors, or analysts. A more objective way of reporting options activity would be to use specific metrics such as put/call ratio, open interest, volume, implied volatility, etc.
3. The article focuses on the number of trades rather than the value or size of the contracts. This gives a distorted picture of the market activity and the whales' involvement. For example, 6 puts worth $735,942 and 7 calls worth $371,845 may sound significant, but they could represent only a small fraction of the total options volume or open interest for FDX. A more relevant metric would be to compare the whales' trades with the overall market capitalization or revenue of FedEx.
4. The article makes an arbitrary assumption that whales have been targeting a price range from $220.0 to $280.0 for FDX based on the volume and open interest trends. This is not a valid inference, as there could be many other factors influencing the options prices and the whales' strategies. For example, the whales may be hedging their positions, speculating on volatility, arbitraging between different markets or instruments, etc. A more reliable way of estimating the whales' price targets would be to use statistical models or technical analysis tools that account for historical and current data.
5. The article lacks any context or background information about FedEx as a company, its industry, its competitors, its performance, its prospects, etc. This makes it difficult for readers to understand the relevance and significance of the options activity and the whales' actions. A more informative article would provide some basic facts and figures about FedEx and explain how they relate to the options market and the whales' behavior.