FedEx Friday Expire Calls Fly
$FedEx (FDX.US)$ The firm jumped 14% Wednesday after reporting Q4 earnings Tuesday just above expectations, but investors watched the firm's cost-cutting and full-year 2025 guidance. The company cut costs by 16% and expects this next fiscal year 2025 to go the same, with up to $2B in savings from cost-cutting programs.
In part after the news, options contracts on the stock flew to the top 20 in the entire U.S. market by trading volume. Overall, 195k contracts traded hands Wednesday, at one point in the top five for all stocks and equities.
One contract, the $300 call expiring Friday, saw the most volume, with 15k contracts changing hands. The contract climbed 188% in price Wednesday and gives holders the right to purchase Fedex at $300/share, for the median price of 96C a share for 100 shares.
Overall, the Put:Call ratio between open interest contracts was 40:60, puts to calls. Overall, traders swapped 9M shares Wednesday for a turnover of $2.68B.
Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy.
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