The big people who have lots of money are watching a company called FedEx. They use something called options to bet if the price of FedEx will go up or down. Half of them think it will go up and half of them think it will go down. The possible prices they are looking at are between $180 and $300. This helps us understand how much people care about this company and its price. Read from source...
1. The article title "Check Out What Whales Are Doying With FDX" is misleading and clickbait. It suggests that the whales are doing something significant or unusual with their FDX positions, but it does not provide any evidence or details of what they are actually doing. A more accurate and informative title would be "Analyzing The Whales' Options Trades With FDX".
2. The article body starts by stating that the whales have taken a bullish or bearish stance on FDX, but then contradicts itself by saying that 50% of them are bullish and 50% are bearish. This is inconsistent and confusing for the reader, who might think that the whales are divided in their expectations or that the author made a mistake. A clearer way to express this would be "The whales have shown mixed sentiment on FDX, with half of them buying calls and half of them buying puts".
3. The article does not explain what options history it is referring to, how it detected 10 trades, or when these trades were executed. This lacks transparency and credibility, as the reader cannot verify the source or accuracy of this information. A better way to present this would be "According to our analysis of options data from XYZ platform, we found 10 trades involving FDX options that were executed between date1 and date2".
4. The article uses vague terms like "specifics of each trade" and "the big players" without defining them or providing any context. This makes the article unclear and ambiguous, as the reader does not know what these terms mean or how they relate to FDX options. A more precise way to communicate this would be "The trades we analyzed consisted of 6 puts with a face value of $462,642 and 4 calls with a face value of $187,033. The big players are the investors who own more than 100 contracts in either direction".
5. The article does not provide any evidence or reasoning for why the whales have been eyeing a price window from $180.0 to $300.0 for FDX, or how this information is key in gauging liquidity and demand. This makes the article irrelevant and unconvincing, as the reader cannot see any connection between the options trades and the stock performance. A more convincing way to present this would be "Based on our analysis of volume and open interest, we observed that the whales have been targeting a price range from $180.0 to $300.0 for FDX, which corresponds to the highest traded prices in the past quarter. This suggests
Bullish
Reasoning: The article mentions that whales with a lot of money have taken a noticeably bullish stance on FDX. This indicates that they expect the stock price to rise or maintain its value. Additionally, the whales seem to be targeting a price range between $180.0 and $300.0 for FDX during the past quarter, which also suggests optimism about the stock's performance.
Based on the article, it seems that whales are bullish on FDX with a mix of put and call options. However, they have not shown any clear preference for either direction as the percentage of bullish and bearish trades is equal. The predicted price range is between $180.0 to $300.0 which indicates that there may be some significant volatility in the stock price. Therefore, a possible investment recommendation would be to buy a straddle strategy with a strike price near the midpoint of the price range, e.g., $240.0. This way, you would benefit from either an increase or decrease in the stock price while also limiting your potential losses. The risk is that the stock price does not move significantly and the straddle expires worthless. Alternatively, you could buy a call spread strategy with a lower strike price near $210.0 and an upper strike price near $270.0. This way, you would benefit from an increase in the stock price while also capping your potential losses if the stock price does not rise above the higher strike price. The risk is that the stock price does not move significantly or falls below the lower strike price and the call spread expires worthless.