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Today, we are opening a new bullish trade on FedEx (NYSE:FDX). As the consumer economy continues to heat up in the United States amid strong employment and earnings growth, we anticipate FDX is going to continue its rebound in the run up to the company’s earnings announcement, which is scheduled for Tuesday, March 20, after market close.

One of the reasons FDX is in a position to rebound is the, in our opinion, overblown negative reaction the stock saw in response to fears that Amazon.com (NASDAQ:AMZN) may be moving into the package-delivery industry. AMZN doesn’t have the national infrastructure to truly compete with FDX at the moment, which should provide some relief to the battered stock price. Plus, FDX is looking to plow a lot of its substantial tax savings back into its business, modernizing its hub in Memphis and streamlining operations elsewhere. All of this should boost the value of the stock.

We’re looking for the stock to challenge and break through resistance at $256, which should improve the valuation of our $260 strike price as it becomes the at-the-money strike.

‘Buy to open’ the FDX April 260 Call (FDX180420C00260000) for a maximum price of $4.40.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.