I’ll be brief so you can act on today’s new trade.
Our Apex Movement Patterns (AMPs) identified a downturn in ConocoPhillips (NYSE: COP), a major oil and gas producer.
It signaled a buy on red. So, let’s go ahead and buy COP puts!
After that, let’s close our put options in semiconductor company Qualcomm Inc. (Nasdaq: QCOM).
Our AMPs argue for a potential breakout against this trade. Let’s cut our risk of loss on this one.
COP Meets Our 2 Rules
Rule No. 1: The Apex Profit Trigger
Click here to learn more about this proprietary indicator.
On COP’s chart, the black bars in our momentum indicator turned red, which is our signal.
We’ll buy on red with July 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.
COP’s price is around $44.15 today.
If COP falls 16% to our target — around $37 per share — the options we’re recommending today provide the chance for a 115% gain before they expire on July 17!
Your 1st Action to Take:
Buy to Open COP July $44 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: |
ConocoPhillips (NYSE: COP) |
Option Type: |
Put Option |
Expiration: |
July 17, 2020 |
Strike Price: |
$44 |
Option Symbol: |
COP200717P00044000 |
Action: |
Buy to Open |
Order Type: |
Limit Order |
Duration: |
GTC (Good ‘Til Canceled) |
Limit Price: |
$3.25 (Anything below $3.25 is great.) |
Note: Do not place a market order. |
|
Once this order is filled, place the following order: |
|
Sell Action to Take |
|
Stock: |
ConocoPhillips (NYSE: COP) |
Option Type: |
Put Option |
Expiration: |
July 17, 2020 |
Strike Price: |
$44 |
Option Symbol: |
COP200717P00044000 |
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 $5.52 if entry is $3.25.) 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.
Your 2nd Action to Take:
Sell to Close QCOM July $75 Put Options
Here are your details to complete this action:
Trade Recommendation |
|
Sell Action to Take |
|
Stock: |
Qualcomm Inc. (Nasdaq: QCOM) |
Option Type: |
Put Option |
Expiration: |
July 17, 2020 |
Strike Price: |
$75 |
Option Symbol: |
QCOM200717P00075000 |
Action: |
Sell to Close |
Order Type: |
Limit Order |
Duration: |
GTC (Good ‘Til Canceled) |
Limit Price: |
$2.20 (Anything above $2.20 is great.) |
Note: Do not place a market order. |
|
If you have any questions about today’s trades, email our team at apexprofit@banyanhill.com.
Good investing,
John Ross
Editor, Apex Profit Alert