FDXF Strangle 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 strangle on FDXF?
A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.
FDXF snapshot
As of August 14, 2026, spot at $150.38, ATM IV 48.40%, expected move 13.88%. The strangle 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 strangle 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 strangle setup
The FDXF strangle 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 1 | Call | $160.00 | $5.05 |
| Buy 1 | Put | $145.00 | $6.10 |
FDXF strangle risk and reward
- Net Premium / Debit
- -$1,115.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$1,115.00
- Breakeven(s)
- $133.85, $171.15
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.
FDXF strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle 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% | +$13,384.00 |
| $33.26 | -77.9% | +$10,059.13 |
| $66.51 | -55.8% | +$6,734.25 |
| $99.76 | -33.7% | +$3,409.38 |
| $133.00 | -11.6% | +$84.50 |
| $166.25 | +10.6% | -$489.63 |
| $199.50 | +32.7% | +$2,835.25 |
| $232.75 | +54.8% | +$6,160.12 |
| $266.00 | +76.9% | +$9,484.99 |
| $299.25 | +99.0% | +$12,809.87 |
When traders use strangle on FDXF
Strangles on FDXF are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the FDXF chain.
FDXF thesis for this strangle
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 long strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. 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 strangle positions are structurally neutral / high-volatility (long premium, OTM); 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. Always rebuild the position from current FDXF chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on FDXF?
- A strangle on FDXF is the strangle strategy applied to FDXF (stock). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. 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 strangle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the FDXF strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,115.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDXF strangle?
- The breakeven for the FDXF strangle priced on this page is roughly $133.85 and $171.15 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 strangle on FDXF?
- Strangles on FDXF are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the FDXF chain.
- How does current FDXF implied volatility affect this strangle?
- Current FDXF ATM IV is 48.40%; IV rank context is unavailable in the current snapshot.