In yesterday’s alert, we recommended you buy on black with solar industry stock Enphase Energy Inc. (Nasdaq: ENPH).

That put our model portfolio on even footing with two buys on black and two buys on red.

The current market environment calls for mixed positioning like this — where we buy the stronger stocks and sell the weaker ones.

In this light, we recommend adding a new buy on red in the energy sector using put options on Hess Corporation (NYSE: HES).

Hess is an oil and natural gas producer with operations that also include distributing and storing natural gas and crude oil products around the U.S.

The stock is struggling to keep pace with the rise in crude oil. At the same time, crude oil’s upside momentum is waning.

The price of oil is often used as an indication of sentiment for energy stocks. And the potential for a new decline in oil suggests a deeper corrective decline is due for HES’ stock.

Our Apex Movement Patterns tell us to expect a double-digit decline in HES.

So, let’s buy HES puts on red for the chance to grab a triple-digit gain when the stock falls!

HES Meets Our 2 Rules

Rule No. 1: The Apex Profit Trigger

Click here to learn more about this proprietary indicator.

On HES’ chart, the black bars in our momentum indicator turned red, which is our signal.

We’ll buy on red with August 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.

HES’ price is around $49.75 today.

If HES falls 18% to our target — around $40 per share — the options we’re recommending today provide the chance for a 132% gain before they expire on August 21!

Your Action to Take:
Buy to Open HES August $50 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
Buy Action to Take
Stock:	Hess Corporation (NYSE: HES)
Option Type:	Put Option
Expiration:	August 21, 2020
Strike Price:	$50
Option Symbol:	HES200821P00050000
Action:	Buy to Open
Order Type:	Limit Order
Duration:	GTC (Good ‘Til Canceled)
Limit Price:	$4.40 (Anything below $4.40 is great.)
Note: Do not place a market order.
Once this order is filled, place the following order:
Sell Action to Take
Stock:	Hess Corporation (NYSE: HES)
Option Type:	Put Option
Expiration:	August 21, 2020
Strike Price:	$50
Option Symbol:	HES200821P00050000
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 $7.48 if entry is $4.40.) 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.

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 today’s trade, email our team at apexprofit@banyanhill.com.

Good investing,

John Ross
Editor, Apex Profit Alert