August 20, 2019 - MDT Alert (FDX)

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to the six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.

I felt we would see one more downleg and it appears we are getting it.

I am going to suggest a short term debit spread. And I am going to suggest it on Federal Express (FDX).

FDX is trading around 156.25 as I write this.

My suggestion is this:

Buy to Open August 23rd - $155 Put for $1.30

Sell to Open the August 23rd - $152.50 Put for $0.70

The net debit is $60 per spread.

I suggest you limit this to a 10 lot or 0.6% of the portfolio.

I have projections down to the $152 area and if FDX drops to that level, the 10 lot will be worth about $2,500.

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