DailyPlay – Opening Trade (FDX) – December 17, 2025

FDX Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
FedEx Corp. (FDX), We recently closed a bullish credit spread and realized profits ahead of the company’s earnings report scheduled for this Thursday, December 18th, after the close. While the decision was driven by prudent risk management ahead of the event, our broader bullish thesis on FedEx remains unchanged. FDX continues to show strengthening momentum within the transportation sector, while supportive valuation metrics underpin a constructive setup heading into potential earnings-related volatility.

Technical Analysis
FDX is exhibiting solid bullish momentum, trading comfortably above its rising 20-day, 50-day, and 200-day moving averages, a hallmark of a healthy and well-supported uptrend. The chart reflects a clear shift out of consolidation and into sustained higher highs and higher lows, underscoring improving trend strength. With $300 serving as our primary upside objective, last reached in December of last year, the technical setup remains favorable as long as price holds above its key moving averages in the wake of this week’s earnings event.

Fundamental Analysis
Fundamentally, FedEx screens as modestly undervalued relative to peers, with growth and profitability metrics broadly in line with industry norms.

• Forward PE Ratio: 15.61x vs. Industry Median 19.44x
• Expected EPS Growth: 9.33% vs. Industry Median 9.56%
• Expected Revenue Growth: 4.05% vs. Industry Median 4.16%
• Net Margins: 4.65% vs. Industry Median 5.20%

This valuation discount provides a favorable backdrop, particularly as operational efficiency initiatives and cyclical stabilization support earnings durability.

Options Trade
To align with our bullish outlook, consistent with the view we held into earnings, we look to establish a bullish put vertical spread by selling the FDX January 30, 2026 $280/$270 put vertical for a net credit of $3.88. This structure offers a maximum reward of $3.88 against a maximum risk of $6.12, resulting in a reward-to-risk ratio of approximately 0.63. The trade provides clearly defined downside risk and reward, allowing us to maintain bullish exposure while managing potential volatility that may be created by the earnings announcement.

FDX – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 FDX Jan 30 $280/$270 Put Vertical Spreads @ $3.88 Credit per Contract.

Total Risk: This trade has a max risk of $1,836 (3 Contracts x $612) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $612 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 91

Stop Loss: @ $7.76 (100% loss to value of premium)

View FDX Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Tuesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View FDX Trade