Despite this being the doldrums of earnings season, there are several reports of note this week, including Carnival Corp. (NYSE: CCL), Walgreen (NYSE: WAG), Adobe (NASDAQ: ADBE), Red Hat (NYSE: RHT), and Oracle (NASDAQ: ORCL), to name a few. But one of the biggest names — FedEx Corp. (NYSE: FDX) — offers up an interesting earnings play.

FDX reports on Wednesday before the open, with analysts expecting a healthy 29% increase in EPS from a year ago. But last year, the company more than doubled up on earnings, so the current estimate appears far less daunting.

FDX would seem to have some fundamentals working in its favor. Business shipping is ticking higher and consumers’ appetites for online shopping are healthy. And oil prices are slipping back to levels in the low $90s that were last seen in January. But don’t hold your breath waiting for FDX to lower prices based on lower fuel costs, creating a robust outlook for margins.

On the chart, the stock has slipped along with the rest of the market. In fact, the shares are off about 10% since the beginning of May. But the equity has apparently found a bid at the 86 level, which supported pullbacks in March and November.

Sentiment toward FDX is largely positive, as one would expect. But option traders have been piling on the puts of late, pushing the put/call ratio to near an annual high. That tells us that expectations may be muted ahead of earnings.

FDX has enjoyed some solid success after recent earnings releases, gaining more than 8% in the two weeks following the previous report in March. With guarded expectations and solid chart support, FDX is setting up for another round of post-earnings momentum. Buy the FDX July 87.50 Call for $3 or less.

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