FDX Long Put 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 long put on FDX?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current FDX snapshot
As of June 30, 2026, spot at $312.03, ATM IV 31.73%, IV rank 38.91%, expected move 9.10%. The long put 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 31-day expiry.
Why this long put structure on FDX specifically: FDX IV at 31.73% 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 9.10% (roughly $28.39 on the underlying). The 31-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 $312.03 per share and to the trader's directional view on FDX stock.
FDX long put setup
The FDX long put 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 $312.03, 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 31-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 | Put | $310.00 | $9.83 |
FDX long put risk and reward
- Net Premium / Debit
- -$982.50
- Max Profit (per contract)
- $30,016.50
- Max Loss (per contract)
- -$982.50
- Breakeven(s)
- $300.18
- Risk / Reward Ratio
- 30.551
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
FDX long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put 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% | +$30,016.50 |
| $69.00 | -77.9% | +$23,117.45 |
| $137.99 | -55.8% | +$16,218.41 |
| $206.98 | -33.7% | +$9,319.36 |
| $275.97 | -11.6% | +$2,420.32 |
| $344.96 | +10.6% | -$982.50 |
| $413.95 | +32.7% | -$982.50 |
| $482.94 | +54.8% | -$982.50 |
| $551.93 | +76.9% | -$982.50 |
| $620.92 | +99.0% | -$982.50 |
When traders use long put on FDX
Long puts on FDX hedge an existing long FDX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying FDX exposure being hedged.
FDX thesis for this long put
The market-implied 1-standard-deviation range for FDX extends from approximately $283.64 on the downside to $340.42 on the upside. A FDX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long FDX position with one put per 100 shares held. Current FDX IV rank near 38.91% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put 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 long put positions are structurally bearish; 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. Long-premium structures like a long put on FDX are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current FDX chain quotes before placing a trade.
Frequently asked questions
- What is a long put on FDX?
- A long put on FDX is the long put strategy applied to FDX (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With FDX stock trading near $312.03, 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 long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the FDX long put priced from the end-of-day chain at a 30-day expiry (ATM IV 31.73%), the computed maximum profit is $30,016.50 per contract and the computed maximum loss is -$982.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDX long put?
- The breakeven for the FDX long put priced on this page is roughly $300.18 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 9.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on FDX?
- Long puts on FDX hedge an existing long FDX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying FDX exposure being hedged.
- How does current FDX implied volatility affect this long put?
- FDX ATM IV is at 31.73% with IV rank near 38.91%, 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.