How War Room Members Gained Nearly 500% on FedEx
What a day to be in The War Room!
Now, I admit, for anyone out there holding shares of FedEx (NYSE: FDX), you’re not going to like what I’m about to say.
Here’s the situation…
Shares of FedEx got clobbered after the company missed profit expectations and lowered its fiscal 2020 outlook due to “increasing trade tensions” and weaker global economic conditions.
Since many view FedEx as a barometer for the entire U.S. economy, this is a very telling – and also very troubling – report.
Specifically, FedEx earned $800 million, or $3.05 per share, which was below the FactSet expectation of $3.15.
But really, it was FedEx Chief Executive Frederick W. Smith who told investors something they never want to hear:
Our performance continues to be negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty.
On this news, shares of FedEx dropped $20. Here’s what the carnage looked like…
Now, here’s the important part…
After seeing this bad news, the “after the fact” analysts all piled in with their downgrades…
- Oppenheimer downgraded FedEx from $176 to $167.
- Raymond James downgraded FedEx from $190 to $175.
- KeyBanc Capital downgraded FedEx from overweight to sector weight.
Where were these warnings before yesterday’s announcement?
Nowhere to be found, obviously.
That’s why being inside The War Room is so beneficial.
You see, we got our members positioned for this move ahead of time!
Here’s exactly what I wrote yesterday – before FedEx got crushed…
It might be wishful thinking… but FedEx has room down to $152 off this double top.
How’s that for a forecast?
And here’s the best part: The FedEx recommendation we made based off this forecast was an absolute home run.
For those who entered the FedEx $170 and $175 strangle, they made an overnight winner around 128%.
For any speculators who bought only the puts – based off my recommended double top and $152 forecast – they made a stunning overnight winner of around 392%.
Some made even more! Here’s what some War Room members said…
“FedEx was good for me… Bought eight put contracts at $3.40… out of them this a.m. for $17.80… made $11,520.” – Robert D.
“In FedEx puts at $3.45, out at $17.10 = 496% – Thanks, BB” – Dale A.
“Awesome trade for FedEx made enough to pay for my daughter’s car!” – Mark D.
“Wow… FedEx $170 put, in at $340, out at $1,855 = 545% profit. Thank you, BB” – Hubert L.
Action Plan: As I’ve shown you in the past, earnings reports could present you with some of the biggest single-day winners of your entire trading career. Now, don’t get me wrong, I don’t play every single earnings report.
For me to make a play, the trade must pass through a meticulous inspection methodology that I’ve spent years perfecting. But for that small collection of names that do trigger, the gains can be spectacular. This newest FedEx example is real-life proof. To start making these trades, I invite you join The War Room today!
Oh, and just to make your decision easier, here are some additional notes I received today…
“WOOOOW!!!!!!! FedEx open at $3.39 and closed at an incredible $18.86 THANKS, BRYAN!” – Ramon S.
“In FedEx puts at $4.13 and out at $21.01. I will need a calculator to figure out these profits. Boom! Thanks to Bryan and the great folks in The War Room.” – Hall
“Ditto… in at $4.05, out at $21.50… The War Room rocks!!!!” – Michael E.
“Just beginning with The War Room: 333%” – Michel C.
“Bryan and Karim, HUGE THANK YOU for the FedEx trade! Just bagged $10,350!” – Mark P.