FedEx (FDX) Offering Possible 44.93% Return Over the Next 21 Calendar Days

FedEx’s most recent trend suggests a bullish bias. One trading opportunity on FedEx is a Bull Put Spread using a strike $165.00 short put and a strike $160.00 long put offers a potential 44.93% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $165.00 by expiration. The full premium credit of $1.55 would be kept by the premium seller. The risk of $3.45 would be incurred if the stock dropped below the $160.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for FedEx is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for FedEx is bullish.

The RSI indicator is at 71.24 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


FedEx (FDX) Outpaces Stock Market Gains: What You Should Know
Wed, 29 Jul 2020 21:45:09 +0000
FedEx (FDX) closed the most recent trading day at $169.55, moving +1.57% from the previous trading session.

Postal Service reaches Agreement On $10 Billion Treasury Loan
Wed, 29 Jul 2020 20:37:22 +0000
The U.S. Postal Service (USPS) has reached an “agreement in principle” with the U.S. Treasury Department on a long-awaited $10 billion loan that the agency needs to survive a steep drop in mail volume and staggering financial losses.But the loan comes with a caveat: USPS must provide Treasury copies of its 10 largest service contracts with third-party last-mile delivery companies Inc (NASDAQ: AMZN), FedEx Corporation (NYSE: FDX), and United Parcel Service Inc (NYSE: UPS), according to the Washington Post, which received a copy of the loan’s term sheet.The agreement for the loan, which was included in the original CARES Act legislation the Senate passed in March, was unanimously approved by the USPS Board of Governors on Tuesday. The board announced Wednesday that it expects the parties will formalize the agreement in loan documents developed over the coming weeks.Access to the new line of borrowing authority from the Treasury “will delay the approaching liquidity crisis,” said U.S. Postmaster General Louis DeJoy. Dejoy warned, however, that the agency “remains on an unsustainable path and we will continue to focus on improving operational efficiency and pursuing other reforms in order to put the Postal Service on a trajectory for long-term financial stability.”Dejoy’s predecessor, Megan Brennan, asserted in April that the CARES Act loan was needed to help offset an increase in net operating loss of more than $22 billion over the next 18 months as a result of the coronavirus pandemic.But shortly after, President Donald Trump balked at the loan, stating at an April 24 press briefing that he would not authorize Treasury Secretary Steven Mnuchin to sign off on the loan unless USPS raises the prices it charges Amazon and others for parcel delivery.A major infrastructure package backed by Democrats that passed the U.S. House of Representatives on July 1, the $1.5 trillion Moving Forward Act, includes $25 billion to fund USPS, with $6 billion of that dedicated to new zero-emission trucks. However, the legislation is not given much chance of passing in the Senate.USPS reported on May 8 a $4.5 billion loss for its latest fiscal quarter amid warnings that government intervention would be needed to avoid a potential service shutdown. The loss was more than double the $2.1 billion loss in the same period last year.USPS has relied heavily on large-scale partners like FedEx, UPS, and Amazon to induct parcels deep into the postal infrastructure for last-mile deliveries to residences and businesses. The companies use USPS’ universal-delivery network to provide deliveries without the cost of dispatching their drivers and vans. In recent years, however, UPS and FedEx have created algorithms allowing them to better compete with USPS for large amounts of traffic.Competition levels have increased on the international front for USPS as well. Starting July 1, a new pricing structure for low-value small parcels went into effect that raises rates on shipments connecting several origin and destination postal systems.Related articles: * US Postal Service loses .5 billion in latest quarter * Former XPO executive tapped to head US Postal Service * DOT using Postal Service to step up face mask distributionClick for more FreightWaves articles by John Gallagher.See more from Benzinga * Seafarer Welfare Crisis ‘Ticking Time Bomb’ * Ship Orders Collapse; Will Rate Boom follow? * Ryder Beats Estimates But Its Earnings Show Signs Of The Pandemic’s Impact(C) 2020 Benzinga does not provide investment advice. All rights reserved.

Federal Express Corporation — Moody’s rates FedEx’s 2020-1 freighter EETC: Class AA at Aa3
Wed, 29 Jul 2020 19:39:10 +0000
Moody’s Investors Service (“Moody’s”) assigned a Aa3 rating to Federal Express Corporation’s Pass Through Certificates, Series 2020-1AA (the “Certificates”) announced earlier today. Federal Express Corporation is the airline subsidiary of FedEx Corporation (“FedEx”). The Baa2 senior unsecured rating of FedEx, all other ratings of FedEx and Federal Express Corporation, and the negative outlook on all ratings are unaffected by today’s rating assignment.

FedEx Pilots Urge Company To Suspend Hong Kong Flights Over COVID Mandates
Wed, 29 Jul 2020 17:39:41 +0000
Pilots at FedEx Corporation (NYSE: FDX) are urging the express carrier to suspend flight operations in Hong Kong over concerns about requirements that airline crews submit to mandatory hospital quarantines under what they describe as dangerous conditions.The FedEx unit of the Air Line Pilots Association (ALPA) said late Tuesday that three pilots who tested positive for COVID-19, but were asymptomatic, were forced by Hong Kong authorities to spend up to 10 days in government-selected hospital facilities with as many as five patients to a room with one shared bathroom. Pilots or family members found to have been exposed to a COVID-19 positive individual are placed in a government quarantine facility for up to 14 days with sparse provisions, the bargaining unit said.Union leaders say the conditions fall below the standard of care in the U.S. and are calling on the airline to suspend operations because pilots, including Hong Kong-based crews, are at risk. “Not only do these situations pose unacceptable risks to our pilots’ safety and well-being, but they also create added stress and distraction for flight operations,” said Capt. Dave Chase, executive council chairman of the FedEx ALPA Master Executive Council, in a statement. “While the COVID-19 global pandemic rages on, FedEx pilots continue to provide essential services, operating in extremely challenging and ever-changing environments and constantly adapting to new government mandates and restrictions around the globe.”Hong Kong instituted the new health safety measures to contain another wave of COVID-19 cases. The city has experienced triple-digit increases in infections every day since July 22, according to the South China Morning Post. New measures that went into effect Wednesday require aircrews to take a virus test before they fly and have proof of a negative test.”The safety and well-being of our team members continues to be our top priority. The situation in Hong Kong is dynamic as the Hong Kong government adapts its policies to prevent a resurgence of the virus there,” FedEx said in a statement provided to FreightWaves. “We are fully engaged with government authorities to support our crew members in situations requiring medical treatment or self-isolation in Hong Kong. Our operations in Asia Pacific are vital to our global network, and we are proud of the way our entire FedEx team has continued to operate through difficult circumstances to keep the global supply chain moving around the world.”Earlier this month, United Airlines Holdings Inc (NASDAQ: UAL) and American Airlines Group Inc (NASDAQ: AAL) temporarily suspended operations in Hong Kong, including cargo-only flights,  because of invasive tests for COVID-19 that upset pilots and flight attendants, and left open the possibility of flight disruptions if a positive test forced entire crews to quarantine. United is now making stops in Tokyo and Guam to change crews and bypass the Hong Kong tests.Airlines have faced similar challenges in mainland China, with some carriers using Seoul, South Korea, and Tokyo has hubs so they don’t have to change crews at Chinese airports.Passenger airlines and all-cargo operators for months have urged governments to tread carefully with regard to travel and health screening restrictions that limit the ability to reopen economies or quickly deliver urgent COVID-related supplies.Click here for more FreightWaves/American Shipper articles by Eric Kulisch.RECOMMENDED READING:Regulatory flexibility needed to keep supply lines open, airfreight industry saysOutbound airfreight market tightens from China, Hong KongIATA outlook for airline industry recovery slides to 2024United Airlines goes on cargo tearSee more from Benzinga * U.S. Reallocates Asia Cargo Routes To Kalitta And FedEx * Companies Channel Spirit Of ‘Coopetition’ For Blockchain Success * Analysis: Amazon Air And ATSG Grow Together(C) 2020 Benzinga does not provide investment advice. All rights reserved.

FedEx pilots, union call on company to suspend Hong Kong operations
Wed, 29 Jul 2020 02:56:50 +0000
The Air Line Pilots Association International (ALPA) said three FedEx pilots infected with the coronavirus were forced into mandated hospital facilities for up to 10 days in Hong Kong. “Not only do these situations pose unacceptable risks to our pilots’ safety and wellbeing, but they also create added stress and distraction for flight operations,” said Dave Chase, chairman, FedEx ALPA Master Executive Council. FedEx in a statement said the company was fully engaged with government authorities to support its crew members in situations that required medical treatment or self-isolation in Hong Kong.

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