Hi Shoppers,

Looking at the FedEx (Ticker: FDX) chart, I think it is gearing up for a run higher:

The last two days have created spinning tops and the start of a bull flag off that large green bullish candle.

I think FDX is getting ready to close that gap created on September 15th which would take it back up to $195.85.

I have an old support line there creating new resistance.

Looking at the options, there isn’t a higher skew to the out of the money calls, meaning the implied volatility of the out of the money calls is lower than the IV of the at the money calls:

I will be looking to buy the Nov25 177.50 calls and then after a rally, sell the 187.50 or 190 calls.

Use the lows of the last couple days for your stop loss.

Thanks for Reading … See You Next Tuesday.

Licia Leslie