As many traders know and most new traders will learn, it is important to find a stock that has a great technical setup for playing either a bullish or bearish strategy. Here is a trade idea with a nice bearish outlook that we can play with put options.

FedEx Corp. (NYSE:FDX): Long Puts

The trade:  Buy the FDX Nov 70 Puts for $3.50 or less.

The strategy: The long put strategy is pretty straightforward. The trade profits when the stock falls and the put premium increases as the stock moves farther and farther into the money. Maximum profit is almost unlimited because FDX can only fall to $0 (which is highly unlikely) and the maximum loss is $3.30 if FDX finishes above $70 at November expiration.

The rationale: Some analysts say that as the economy goes, so goes the stocks of package shipping companies. Whether that is true or not is debatable, but one thing that is not debatable is that FDX has been in a downtrend since early July.

The stock had a tough time getting below a support area at $72, but now that it has, it looks like it might have a tough time climbing back above it. Currently FDX is at the old area of support that is now resistance, and it has formed a double-top, which can be construed as a bearish sign.

A nice target for the stock is in the $66 area. This is a trade that might hit the target area within a few days. Consider exiting the position if the stock trades above $74, which is another resistance area that would signal the end of the bearish trend.