Using Earnings Weakness as a Portfolio Hedge

$FDX $SPY $CHWY

FDX 0.00%↑ is off about 10% today following earnings.

The playbook of what happens with FDX 0.00%↑ below $270 is established -

I’m using options to collect income in scenarios where FDX 0.00%↑ remains below $270. Why am I classifying this as a portfolio hedge? Because I’m aggressively long single stocks right now. If the market sells off, which it will inevitably do at some point and to some capacity, FDX 0.00%↑ is likely heading lower alongside my stocks (and I’ll be keeping the premiums I’ve sold).

Here’s a relative chart of FDX 0.00%↑ vs SPY 0.00%↑ which demonstrates this -

And if the market keeps grinding higher? Great! This relative chart shows that FDX 0.00%↑ has been a laggard vs the SPY 0.00%↑ anyway. Compare that to this relative chart of CHWY 0.00%↑ to the SPY 0.00%↑.

I’m long CHWY 0.00%↑ above $22, and am betting that this relative chart continues it’s reversal.