GO
Loading...

Fast Action: Using Options To Predict Earnings Moves

With economic bellwether FedEx reporting earnings this week, how can you use options to game the move?

Considering options invetors are pricing in a 4.6% move in either direction this quarter, Cantor Fitzgerald’s Mike Khouw recommends the follow:

FDX Options Chain - $87.20
Buying April 85-Strike Put For $2.05
Selling April 80-Strike Put For $0.85

Want to learn more about this trade? Watch the video now!




______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On March 15, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm And Finerman Own (GOOG); Finerman's Firm And Finerman Own (JPM); Finemran's Firm Owns (WFC) Preferred; Finerman's Firm Owns (BSX), (OSIP), (TGT), (WMT); Finerman's Firm Owns (KFT); Kelly Owns (AMZN) Calls; Kelly Owns (ELX) Calls; Seymour Owns (BX), (EEM), (FXI), (MSFT), (XOM), (AAPL), (BAC), (GE), (F); Jon Najarian Owns (FCX), Is Short (FCX) Calls; Jon Najarian Owns (MSFT), Is Short (MSFT) Calls; Jon Najarian Owns (TGT), Is Short (TGT) Calls; Jon Najarian Owns (WMT), Is Short (WMT) Calls; Jon Najarian Is Short (GOOG) Through Put Spreads; Jon Najarian Owns (GS), Is Short (GS) Calls; Jon Najarian Owns (C), Is Short (C) Calls; Karabell Owns (FCX), (NKE), (GOOG), (FXI), (C); Nations Owns (MSFT), (SPY)

GE Is The Parent Company Of CNBC

For Brian Kelly
Kanundrum Capital Owns (JPM)
Kanundrum Capital Owns (GE)
Kanundrum Capital Owns (BRCM)
Kanundrum Capital Owns (ELX)
Kanundrum Capital Owns (GLD)
Kanundrum Capital Is Short (RKH)
Kanundrum Capital Is Short (KRE)
Kanundrum Capital Is Short (SLX)
Kanundrum Capital Is Short (X)
Kanundrum Capital Is Short (FCX)
Kanundrum Capital Is Short (AA)
Kanundrum Capital Is Short (ACH)
Kanundrum Capital Is Short (EWH)
Kanundrum Capital Is Short (FXI)
Kanundrum Capital Is Short U.S. Treasuries
Kanundrum Capital Is Short Copper

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (FDX)

For Anthony Scaramucci
Skybridge Owns (PEP), (XOM), (PFE), (LSTZA), (JNJ)

For Jeff Degraaf
DeGraaf Owns (C)

For Deborah Weinswig
A Director Of Citi Is On Board And Audit Committee Of (TGT)
An Employee Of Citigroup Global Markets Or Affiliates Is A Trustee Of (TGT)
An Associate Owns (WMT), (LOW)
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (JCP), (SKS)
Citigroup Global Markets Or Affiliates Has Managed Or Co-Managed Offering Of (DG), (KR), (SVU), (WMT)
Citigroup Global Markets Or Affiliates Has Received Investment Banking Compensation For Services Provided In Past 12 Months From (DG), (KR),
(SKS), (SVU), (TGT), (WMT)
Citigroup Global Markets Or Affiliates Expects To Receive/Seek Investment Banking Compensation From (WMT) In Next Three Months
Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST) In Past 12 Months
(DG), (KR), (SKS), (SVU), (TGT), (WMT) Are Or In Past 12 Months Were Investment Banking Clients Of Citigroup Global Markets
(CVS), (DG), (HD), (JCP), (KSS), (KR), (M), (SWY), (SKS), (SVU), (TGT), (WAG), (WMT), (COST) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities-Related Services)
(HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST), Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Non-Securities Related Services)
Citigroup Global Markets Or Affiliate Received Compensation From (DG) In Past 12 Months
Citigroup Global Markets Is A Market Maker In (CVS), (M), (COST)
Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (CVS), (HD), (JCP), (KSS), (KR), (LOW), (M), (JWN), (SWY), (SKS), (SVU), (TGT), (WMT), (COST)
Citigroup Global Markets Or Affiliates Owns 5% Or More Of (SKS)

For Mark Mananey
Citi Employees Owns (GOOG), (YHOO)
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (AKAM), (NFLX), (PCLN), (YHOO)
Citigroup Global Markets Or Affiliates Has Acted As Manager Or Co-Manager Of An Offering Of (PCLN)
Citigroup Global Markets Or Affiliates Has Received Investment Banking Compensation From (PCLN) In Past 12 Months
(AOL), (MWW), Orbitz, (AMZN), (EBAY), (EXPE), (GOOG), (IACI),Tree.com, (WBMD), (YHOO) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities-Related Services)
(AOL), (MWW), Orbitz, (AMZN), (EBAY), (EXPE), (GOOG), (IACI), (WBMD), (YHOO) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking Non-Securities Serviecs)
Citigroup Global Markets Is A Market Maker In (MWW), (AKAM), (AMZN), (NILE), (EBAY), (EXPE), (GOOG), (IACI), (NFLX), OpenTable, (PCLN), Tree.com, (VCLK), Vistaprint, (WBMD) (YHOO)
Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relatoin To (EBAY), (GOOG), (IACI), (WBMD), (YHOO)
Citigroup Global Markets Or Affiliates Owns 5% Or More Of (YHOO)



CNBC.com with wires

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report