Tony Zhang Advises Viewer On FedEx Ahead Of Earnings

A viewer of CNBC's "Options Action," asked the trading panel a question about FedEx Corporation FDX. The company is going to report earnings on Sept. 15 and the viewer, who sold the October $210/200 put spread in FedEx, wants to know what to do with the position going into earnings.

Tony Zhang said he likes FedEx as it held up pretty well during the sell-off. Regarding the position, Zhang thinks that the viewer's actions depend on his cost basis. If he has already collected more than 50% of the maximal profit on the put spread, it's time to take profits. Otherwise, it makes sense to hold the position through earnings.

Carter Worth also commented on the stock. He said it's the number one constituent of the Dow Jones Transport Index, which had a very big day up on Friday. Worth likes the stock.