FDX Butterfly Strategy
FDX (FedEx Corporation), in the Industrials sector, (Integrated Freight & Logistics industry), listed on NYSE.
FedEx Corporation is a prominent global entity that delivers an extensive array of services encompassing transportation, e-commerce solutions, and diverse business support, catering to clients both within the United States and across international borders. Its operational structure is divided into several key segments: The FedEx Express division specializes in expedited shipping, offering rapid package and freight delivery, crucial time-sensitive logistics, and comprehensive cross-border, technological, and e-commerce transportation services. FedEx Ground focuses on reliable, scheduled delivery services for both commercial clients and individual households. The FedEx Freight unit manages less-than-truckload (LTL) cargo shipments, supported by a significant infrastructure that, as of May 31, 2022, included approximately 30,000 vehicles and 400 service centers. FedEx Services provides essential internal support functions across the company, such as sales, marketing, information technology, communications, customer and technical assistance, billing, collections, and other vital administrative operations. Finally, the Corporate, Other, and Eliminations segment broadens FedEx's offerings to include integrated supply chain management, specialized transportation, customs brokerage, global ocean and air freight forwarding, document and business services, and convenient retail access points for its package delivery operations.
FDX (FedEx Corporation) trades in the Industrials sector, specifically Integrated Freight & Logistics, with a market capitalization of approximately $76.00B, a trailing P/E of 17.31, a beta of 1.30 versus the broader market, a 52-week range of 174.13376-345.37, average daily share volume of 2.4M, a public-listing history dating back to 1978, approximately 306K full-time employees. These structural characteristics shape how FDX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places FDX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FDX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FDX?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
Current FDX snapshot
As of June 29, 2026, spot at $324.09, ATM IV 31.92%, IV rank 39.57%, expected move 9.15%. The butterfly on FDX below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 32-day expiry.
Why this butterfly structure on FDX specifically: FDX IV at 31.92% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 9.15% (roughly $29.66 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FDX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDX should anchor to the underlying notional of $324.09 per share and to the trader's directional view on FDX stock.
FDX butterfly setup
The FDX butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FDX near $324.09, the first option leg uses a $310.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDX chain at a 32-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 FDX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $310.00 | $21.63 |
| Sell 2 | Call | $325.00 | $11.93 |
| Buy 1 | Call | $340.00 | $5.93 |
FDX butterfly risk and reward
- Net Premium / Debit
- -$370.00
- Max Profit (per contract)
- $1,057.64
- Max Loss (per contract)
- -$370.00
- Breakeven(s)
- $313.70, $336.30
- Risk / Reward Ratio
- 2.858
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
FDX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FDX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$370.00 |
| $71.67 | -77.9% | -$370.00 |
| $143.32 | -55.8% | -$370.00 |
| $214.98 | -33.7% | -$370.00 |
| $286.64 | -11.6% | -$370.00 |
| $358.29 | +10.6% | -$370.00 |
| $429.95 | +32.7% | -$370.00 |
| $501.61 | +54.8% | -$370.00 |
| $573.27 | +76.9% | -$370.00 |
| $644.92 | +99.0% | -$370.00 |
When traders use butterfly on FDX
Butterflies on FDX are pinning bets - traders use them when they expect FDX to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
FDX thesis for this butterfly
The market-implied 1-standard-deviation range for FDX extends from approximately $294.43 on the downside to $353.75 on the upside. A FDX long call butterfly is a pinning play: it pays maximum at the middle strike if FDX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FDX IV rank near 39.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FDX should anchor more to the directional view and the expected-move geometry. As a Industrials name, FDX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDX-specific events.
FDX butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. FDX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FDX alongside the broader basket even when FDX-specific fundamentals are unchanged. Always rebuild the position from current FDX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FDX?
- A butterfly on FDX is the butterfly strategy applied to FDX (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With FDX stock trading near $324.09, the strikes shown on this page are snapped to the nearest listed FDX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FDX butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the FDX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.92%), the computed maximum profit is $1,057.64 per contract and the computed maximum loss is -$370.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDX butterfly?
- The breakeven for the FDX butterfly priced on this page is roughly $313.70 and $336.30 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current FDX market-implied 1-standard-deviation expected move is approximately 9.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FDX?
- Butterflies on FDX are pinning bets - traders use them when they expect FDX to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current FDX implied volatility affect this butterfly?
- FDX ATM IV is at 31.92% with IV rank near 39.57%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.