FDXF Covered Call Strategy
FDXF (FedEx Freight Holding Company, Inc.), in the Industrials sector, (Integrated Freight & Logistics industry), listed on NYSE.
FedEx Freight Holding Company, Inc. specializes in transporting less-than-truckload (LTL) cargo across the United States, Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands. The company provides a diverse array of services, enabling customers to efficiently balance transit times with budgetary needs. Following its separation from FedEx Corporation, it now operates as an independent and publicly traded entity.
FDXF (FedEx Freight Holding Company, Inc.) trades in the Industrials sector, specifically Integrated Freight & Logistics, with a market capitalization of approximately $21.12B, a trailing P/E of 29.41, a beta of -7.34 versus the broader market, a 52-week range of 135-200, average daily share volume of 1.8M, a public-listing history dating back to 2026, approximately 40K full-time employees. These structural characteristics shape how FDXF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -7.34 indicates FDXF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a covered call on FDXF?
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.
FDXF snapshot
As of August 14, 2026, spot at $150.38, ATM IV 48.40%, expected move 13.88%. The covered call on FDXF below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on FDXF specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FDXF is inferred from ATM IV at 48.40% alone, with a market-implied 1-standard-deviation move of approximately 13.88% (roughly $20.87 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FDXF expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDXF should anchor to the underlying notional of $150.38 per share and to the trader's directional view on FDXF stock.
FDXF covered call setup
The FDXF covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FDXF at $150.38 on that close, the first option leg uses a $160.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDXF chain at a 35-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 FDXF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $150.38 | long |
| Sell 1 | Call | $160.00 | $5.05 |
FDXF covered call risk and reward
- Net Premium / Debit
- -$14,533.00
- Max Profit (per contract)
- $1,467.00
- Max Loss (per contract)
- -$14,532.00
- Breakeven(s)
- $145.33
- Risk / Reward Ratio
- 0.101
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.
FDXF covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on FDXF. 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% | -$14,532.00 |
| $33.26 | -77.9% | -$11,207.13 |
| $66.51 | -55.8% | -$7,882.25 |
| $99.76 | -33.7% | -$4,557.38 |
| $133.00 | -11.6% | -$1,232.50 |
| $166.25 | +10.6% | +$1,467.00 |
| $199.50 | +32.7% | +$1,467.00 |
| $232.75 | +54.8% | +$1,467.00 |
| $266.00 | +76.9% | +$1,467.00 |
| $299.25 | +99.0% | +$1,467.00 |
When traders use covered call on FDXF
Covered calls on FDXF are an income strategy run on existing FDXF stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
FDXF thesis for this covered call
The market-implied 1-standard-deviation range for FDXF extends from approximately $129.51 on the downside to $171.25 on the upside. A FDXF covered call collects premium on an existing long FDXF position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether FDXF will breach that level within the expiration window. As a Industrials name, FDXF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDXF-specific events.
FDXF 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. FDXF positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FDXF alongside the broader basket even when FDXF-specific fundamentals are unchanged. Short-premium structures like a covered call on FDXF carry tail risk when realized volatility exceeds the implied move; review historical FDXF earnings reactions and macro stress periods before sizing. Always rebuild the position from current FDXF chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on FDXF?
- A covered call on FDXF is the covered call strategy applied to FDXF (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 FDXF stock at $150.38 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FDXF chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FDXF 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 FDXF covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.40%), the computed maximum profit is $1,467.00 per contract and the computed maximum loss is -$14,532.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDXF covered call?
- The breakeven for the FDXF covered call priced on this page is roughly $145.33 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FDXF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.88%; 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 FDXF?
- Covered calls on FDXF are an income strategy run on existing FDXF 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 FDXF implied volatility affect this covered call?
- Current FDXF ATM IV is 48.40%; IV rank context is unavailable in the current snapshot.