FDX Covered Call 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 covered call on FDX?
A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.
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 covered call 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 covered call structure on FDX specifically: FDX IV at 31.38% is mid-range versus its 1-year history, so the credit collected on a FDX covered call sits in line with its long-run distribution, 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 covered call setup
The FDX covered call 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 |
FDX covered call risk and reward
- Net Premium / Debit
- -$36,995.00
- Max Profit (per contract)
- $2,505.00
- Max Loss (per contract)
- -$36,994.00
- Breakeven(s)
- $369.95
- Risk / Reward Ratio
- 0.068
Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.
FDX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call 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% | -$36,994.00 |
| $83.14 | -77.9% | -$28,680.54 |
| $166.28 | -55.8% | -$20,367.09 |
| $249.41 | -33.7% | -$12,053.63 |
| $332.55 | -11.6% | -$3,740.17 |
| $415.68 | +10.6% | +$2,505.00 |
| $498.82 | +32.7% | +$2,505.00 |
| $581.95 | +54.8% | +$2,505.00 |
| $665.09 | +76.9% | +$2,505.00 |
| $748.22 | +99.0% | +$2,505.00 |
When traders use covered call on FDX
Covered calls on FDX are an income strategy run on existing FDX stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
FDX thesis for this covered call
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 covered call collects premium on an existing long FDX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether FDX will breach that level within the expiration window. Current FDX IV rank near 40.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call 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 covered call positions are structurally neutral to slightly bullish; 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. Short-premium structures like a covered call on FDX carry tail risk when realized volatility exceeds the implied move; review historical FDX earnings reactions and macro stress periods before sizing. Always rebuild the position from current FDX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on FDX?
- A covered call on FDX is the covered call strategy applied to FDX (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. 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 covered call max profit and max loss calculated?
- Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the FDX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 31.38%), the computed maximum profit is $2,505.00 per contract and the computed maximum loss is -$36,994.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDX covered call?
- The breakeven for the FDX covered call priced on this page is roughly $369.95 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 covered call on FDX?
- Covered calls on FDX are an income strategy run on existing FDX stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
- How does current FDX implied volatility affect this covered call?
- 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.