FDX Collar Strategy
FDX (FedEx Corporation), in the Industrials sector, (Integrated Freight & Logistics industry), listed on NYSE.
FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company's FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; time-critical transportation services; and cross-border enablement, technology, and e-commerce transportation solutions. Its FedEx Ground segment provides day-certain delivery services to businesses and residences. The company's FedEx Freight segment offers less-than-truckload freight transportation services. As of May 31, 2022, this segment had approximately 30,000 vehicles and 400 service centers. Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services.
FDX (FedEx Corporation) trades in the Industrials sector, specifically Integrated Freight & Logistics, with a market capitalization of approximately $88.21B, a trailing P/E of 20.04, a beta of 1.30 versus the broader market, a 52-week range of 214.35-404.03, average daily share volume of 1.8M, 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 indicates FDX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FDX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FDX?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current FDX snapshot
As of May 15, 2026, spot at $376.00, ATM IV 31.38%, IV rank 40.95%, expected move 9.00%. The collar 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 28-day expiry.
Why this collar structure on FDX specifically: IV regime affects collar pricing on both sides; mid-range FDX IV at 31.38% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.00% (roughly $33.82 on the underlying). The 28-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 $376.00 per share and to the trader's directional view on FDX stock.
FDX collar setup
The FDX collar 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 $376.00, the first option leg uses a $395.00 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 28-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 100 shares | Stock | $376.00 | long |
| Sell 1 | Call | $395.00 | $6.05 |
| Buy 1 | Put | $355.00 | $5.33 |
FDX collar risk and reward
- Net Premium / Debit
- -$37,527.50
- Max Profit (per contract)
- $1,972.50
- Max Loss (per contract)
- -$2,027.50
- Breakeven(s)
- $375.28
- Risk / Reward Ratio
- 0.973
Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
FDX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar 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% | -$2,027.50 |
| $83.14 | -77.9% | -$2,027.50 |
| $166.28 | -55.8% | -$2,027.50 |
| $249.41 | -33.7% | -$2,027.50 |
| $332.55 | -11.6% | -$2,027.50 |
| $415.68 | +10.6% | +$1,972.50 |
| $498.82 | +32.7% | +$1,972.50 |
| $581.95 | +54.8% | +$1,972.50 |
| $665.09 | +76.9% | +$1,972.50 |
| $748.22 | +99.0% | +$1,972.50 |
When traders use collar on FDX
Collars on FDX hedge an existing long FDX stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
FDX thesis for this collar
The market-implied 1-standard-deviation range for FDX extends from approximately $342.18 on the downside to $409.82 on the upside. A FDX collar hedges an existing long FDX position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current FDX IV rank near 40.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar 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 collar positions are structurally neutral (protective); 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 collar on FDX?
- A collar on FDX is the collar strategy applied to FDX (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With FDX stock trading near $376.00, 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 collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the FDX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 31.38%), the computed maximum profit is $1,972.50 per contract and the computed maximum loss is -$2,027.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDX collar?
- The breakeven for the FDX collar priced on this page is roughly $375.28 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 9.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FDX?
- Collars on FDX hedge an existing long FDX stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current FDX implied volatility affect this collar?
- FDX ATM IV is at 31.38% with IV rank near 40.95%, 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.