On CNBC's Options Action
, Brian Stutland suggested to the viewers of the show an options strategy in FedEx Corporation (NYSE:
FDX).
He thinks that investors should use options to make a bullish bet on the stock that is already trading near its 52-week high. He would buy the April 100 calls for $2.25, and sell the April 85 put for $2.35. This trade would allow you to collect a premium of $0.10, and you would also be able to participate on the upside if FedEx (
FDX) continues to move higher.
Brian Stutland believes that Warren Buffett methodology of investing will be a great way to invest in 2011. He sees a lot of potential in the big cap stocks.
FedEx (
FDX) fell 0.82% on Thursday, and closed at $93.10.
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