Price Breaks Provide Option Profits in $FDX

In our TNT Options Trading Service on April 1st, we talked about FedEx (FDX).

We suggested simple targets for $FDX if it should break and make a run either above or below its 100-day SMA, which at the time was right around $187.02. After having pushed up through its 50-day SMA, the shares of FDX were about to make a key decision, whether they would continue to run higher, pushing through the 100-day SMA, or fail at resistance and pull backward.

The stock of FDX would provide a quick put trade by Tuesday’s open as it opened below the 100-day SMA and continued to trade lower throughout the session ultimately closing below our first downside target of $184.50, triggering a roll to protect profits in the positions. While fast, the trade produced profits for nimble option traders to take advantage of the momentum before Wednesday’s trade which didn’t provide a violation of a level with any conviction.

However, patient traders were rewarded on Thursday when FDX made an attempt, and succeeded, to rally up through its 100-day SMA, closing above it and continuing to run into the end of the week on Friday. closing on a flat-line at the $189.71 level, and again triggering a roll. As opportunity exists everyday in the market, and a close eye watching both momentum and flat-lines, traders were able to participate in FDX’s run above its 100-day SMA the next week as shares continued higher, ultimately closing the next week, on April 12th, near the flat-line at $198.70.

Subscribers took advantage of these opportunities and were able to profit anywhere from 50% to 176% in the first week, with even more gains the following, using discipline and a strategy involving their flat-lines, momentum, and key moving averages.

Join Ryan Mastro next week to analyze the next opportunity!