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Buying FedEx puts: Berger

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March 21, 2016 berger, equity, equity market, equity strategy, equity trading, fedex, fedex company, fedex earnings report, fedex stock, fedex stock up, puts, saxo tv, saxotv, tradingfloor.com, tradingfloor.com saxo tv
According to thesteadytrader.com's Serger Berger, the broader transportation complex remains overbought. Last week FedEx posted better than expected earnings and the stock rallied close to 14% on the week. News about a long-term Amazon deal has also created positive momentum for the stock. From a technical perspective, the broader transportation sector is closing in to some lateral resistance. Berger thinks it makes sense to buy some cheap USD 160 strike puts in July at USD 6.50. Stop loss around USD 4.00 and a stock target of USD 155.