Yesterday’s alert told you to close your put options in semiconductor company Qualcomm Inc. (Nasdaq: QCOM). That order has been filled.
It also recommended buying ConocoPhillips (NYSE: COP), a major oil and gas producer, on red.
The stock is moving down as expected. But at last glance, that order has not yet been filled at our recommended limit price or better.
Keep your COP order in place for now. And stay tuned for instructions on canceling or adjusting it if needed.
In the meantime, let’s jump into a new buy-on-red trade in oil refining company Marathon Petroleum Corp. (NYSE: MPC).
Our Apex Movement Pattern setup on MPC is much like the one on COP.
This stock is set to drop double digits in the days ahead. That means the chance to double your money with a trade in Marathon Petroleum put options!
MPC Meets Our 2 Rules
Rule No. 1: The Apex Profit Trigger
Click here to learn more about this proprietary indicator.
On MPC’s chart, the black bars in our momentum indicator turned red, which is our signal.
We’ll buy on red with June put options.
Rule No. 2: Triple-Digit Potential
Options are our “profit accelerator.” They let us capture large, speculative gains.
To ensure our potential reward is worth the risk, we only select options that give us the chance to earn triple-digit gains if the trade reaches our target.
MPC’s price is around $34.40 today.
If MPC falls 14% to our target — around $29.60 per share — the options we’re recommending today provide the chance for a 125% gain before they expire on June 19!
Your 1st Action to Take:
Buy to Open MPC June $35 Put Options
Here are your details to complete two actions:
No. 1, enter the buy order.
And No. 2, place an order to grab profits on HALF of your position when it reaches a 70% open gain. For more about why we recommend this action, click here.
Trade Recommendation |
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Buy Action to Take |
|
Stock: |
Marathon Petroleum Corp. (NYSE: MPC) |
Option Type: |
Put Option |
Expiration: |
June 19, 2020 |
Strike Price: |
$35 |
Option Symbol: |
MPC200619P00035000 |
Action: |
Buy to Open |
Order Type: |
Limit Order |
Duration: |
GTC (Good ‘Til Canceled) |
Limit Price: |
$2.40 (Anything below $2.40 is great.) |
Note: Do not place a market order. |
|
Once this order is filled, place the following order: |
|
Sell Action to Take |
|
Stock: |
Marathon Petroleum Corp. (NYSE: MPC) |
Option Type: |
Put Option |
Expiration: |
June 19, 2020 |
Strike Price: |
$35 |
Option Symbol: |
MPC200619P00035000 |
Action: |
Sell to Close Half (Note: If you buy only one contract, sell the entire contract at a 70% gain, since you can’t sell half a contract.) |
Order Type: |
Limit Order |
Duration: |
GTC (Good ‘Til Canceled) |
Limit Price: |
Whatever nets you a 70% gain based on your entry price. (Example: Sell half your contracts at $4.08 if entry is $2.40.) Click here to learn more about how to calculate your 70% entry price point in your brokerage account. |
Trade Deadline: |
Keep this order open until it is filled or canceled. |
Note: This second order will allow us to collect a 70% gain on half of our position if a quick move happens before I can get a trade alert out to you. |
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Every trade comes with risk. Our risk-management strategy strives to limit individual losses. Proper risk control is a huge part of long-term success.
If you have any questions about yesterday’s or today’s trades, email our team at apexprofit@banyanhill.com.
And look out for your weekly update later today.
Good investing,
John Ross
Editor, Apex Profit Alert