To The Moon

As a swing trader, I am always on the lookout for opportunities to capitalise on the volatility of the stock market. One company that has caught my attention today is $FedEx(FDX)$ FedEx Corporation (FDX), the world leader in express shipping. FDX is set to release its earnings report after the market close today, and I am planning to purchase call options at the strike price of 192.5 expiring next week. In this post, I will discuss my strategy for trading FDX stock and looked at the company's background, competitors, and market performance.

Background of FedEx Corporation (FDX)

FedEx Corporation was founded in 1971 and is headquartered in Memphis, Tennessee. The company provides a wide range of transportation, e-commerce, and business services through its subsidiaries, including FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FDX operates in more than 220 countries and territories worldwide and employs over 500,000 people.

FDX has a market capitalization of over $75 billion and is listed on the New York Stock Exchange (NYSE) under the ticker symbol "FDX." The company's stock price has been on an upward trend over the past few months, closing at $197.39 per share on March 14, up from $169.99 on December 21, 2022.

Competitors in the Shipping Industry

FDX operates in a highly competitive industry, with major players including $United Parcel Service Inc(UPS)$ United Parcel Service (UPS), Deutsche Post AG (DHL), and Amazon.com, Inc. (AMZN). UPS is FDX's main rival, with a similar business model and a market capitalization of over $120 billion. DHL, owned by Deutsche Post, is the world's largest logistics company, with a strong presence in Europe and Asia. Amazon, while primarily an online retailer, has been expanding its logistics operations in recent years, offering shipping services to third-party sellers and delivering packages directly to customers.

Market Performance and Outlook

FDX's stock price has been trending higher in recent months, with a 16% increase since December 2022. The company's third-quarter fiscal year 2023 earnings report, released today, is expected to provide insights into its financial performance and outlook for the coming months. FDX's strategy is focused on long-term profitable growth, with a focus on reducing costs and building on synergies between its services.

The COVID-19 pandemic has had a significant impact on FDX's operations, as it has for many companies in the transportation and logistics industry. While demand for shipping services has increased due to the rise of e-commerce, supply chain disruptions and labor shortages have also created challenges for FDX and its competitors. In addition, rising fuel prices and inflation concerns have raised questions about the company's ability to maintain its profitability in the face of these headwinds.

My Strategy for FDX Stock

Given the potential volatility surrounding FDX's earnings report, I plan to keep my position size small and limit my risk exposure. Since the support level for FDX's stock is currently around 193, based on the day chart below, and the Relative Strength Index (RSI) is below 40, indicating that the stock is near the oversold region. These technical indicators suggest that FDX's stock price may be due for a rebound in the near future. I am targeting call option $FDX%2020230324%20192.5%20CALL$ $FDX 20230324 192.5 CALL$  with a strike price of 192.5, expiring next week, as I believe that FDX's cost restructuring efforts are likely to result in a positive outcome for the company's financial performance in the short term.

As a swing trader, I always look for opportunities to profit from short-term price movements in the market. By analyzing the technical indicators and market trends, I have identified FDX stock as a potential trade opportunity ahead of its Q3 FY23 earnings release. Especially when Fedex is seen as a bellwether for the global economy. Do follow me if you are also a swing or day trader like me.

Thank you for reading my post

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