(The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.)
FedEx is drawing long-term bearish positions ahead of its earnings report this week.
optionMONSTER's Depth Charge monitoring program shows that more than 13,700 January 2017 100 puts were purchased for $2.79 to $3 on Friday. Volume was more than 20 times the open interest in the strike, which indicates that new money was put to work.
Long puts lock in the price the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop. (See our Coaching section)
FDX fell 2.85 percent to $144.26 on Friday and is down 8 percent in the last month. The global delivery giant has seen repeated top-line misses, most recently on Sept. 16. Its next quarterly results are scheduled to come out after the closing bell on Wednesday.
Total option volume in the name on Friday was quadruple its daily average for the last month, according to the Depth Charge. Overall puts outnumbered calls by a bearish 6-to-1 ratio.
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