It was a bloodbath yesterday in the market. The S&P 500 finished the day down more than 5%.
Today is a different story.
Actually, there is no “story” moving this market way down and way back up again in two days’ time.
This is what markets do during heightened levels of speculation and volatility, which characterizes the market’s rebound over the last three months.
In your weekly update later today, I’ll explain why my money is on a deeper downside for stocks.
But we’ll use today’s bounce to our advantage.
Let’s trim our buy-on-black trades in Nutrien Ltd. (NYSE: NTR) and Oracle Corp. (NYSE: ORCL).
Each of these stocks is rallying back in our favor today. We should use this opportunity to trim these losses while they’re small and reduce the risk that the broad market will take another dive.
Meanwhile, sit tight with your buy-on-red trades in Newmont Corp. (NYSE: NEM) and Yamana Gold Inc. (NYSE: AUY).
Our Yamana puts show an open loss, and they expire next Friday, June 19. So, stay tuned for instructions on what to do with that trade. We’ll make a decision soon.
Until then, here are two new trades to make today!
Buy Phillips 66 on Red
Phillips 66 (NYSE: PSX) is an oil refining company.
The stock moves with the broad energy sector. After a significant rally in crude oil prices, as well as oil and refining stocks, Phillips 66 is due for a corrective decline.
Our Apex Movement Patterns tell us the degree of decline to expect. And this stock triggered a buy on red…
Meaning it’s time to buy PSX put options on red!
PSX Meets Our 2 Rules
Rule No. 1: The Apex Profit Trigger
Click here to learn more about this proprietary indicator.
On PSX’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.
PSX’s price is around $79.20 today.
If PSX falls 15% to our target — around $66.50 per share — the options we’re recommending today provide the chance for a 121% gain before they expire on July 17!
Your 1st Action to Take:
Buy to Open PSX July $80 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 |
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Stock: |
Phillips 66 (NYSE: PSX) |
Option Type: |
Put Option |
Expiration: |
July 17, 2020 |
Strike Price: |
$80 |
Option Symbol: |
PSX200717P00080000 |
Action: |
Buy to Open |
Order Type: |
Limit Order |
Duration: |
GTC (Good ‘Til Canceled) |
Limit Price: |
$7.10 (Anything below $7.10 is great.) |
Note: Do not place a market order. |
|
Once this order is filled, place the following order: |
|
Sell Action to Take |
|
Stock: |
Phillips 66 (NYSE: PSX) |
Option Type: |
Put Option |
Expiration: |
July 17, 2020 |
Strike Price: |
$80 |
Option Symbol: |
PSX200717P00080000 |
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 $12.07 if entry is $7.10.) 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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Buy Pan American Silver on Red
If you also subscribe to Matt Badiali’s Real Wealth Strategist newsletter, then you probably know about Pan American Silver Corp. (Nasdaq: PAAS).
This is one of Matt’s favorite big-name silver producers. And one of mine too!
Subscribers who bought shares of PAAS on Matt’s recommendation are sitting on opens gains of more than 100% on that trade.
That’s awesome.
Today’s buy on red is a bet that the price of PAAS will undergo a short-term, corrective decline. This type of thing is normal in any stock’s bull market.
Now, this does not mean you should go sell out of your stock.
Remember: We trade options because we make big money on a relatively small move in the stock. So, while our Apex Movement Patterns show the stock could fall 19% in the near future, it won’t last long.
If you own shares of PAAS, keep hold of them. You can skip today’s buy on red if you want … or you can use it to hedge near-term market risk for your PAAS holding.
If you don’t own PAAS, then just think of this like any other Apex Profit Alert trade: a chance for you to make big gains with a short-term bet on a stock’s coming decline.
PAAS Meets Our 2 Rules
Rule No. 1: The Apex Profit Trigger
On PAAS’ 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
PAAS’ price is around $26.75 today.
If PAAS falls 19% to our target — around $21.50 per share — the options we’re recommending today provide the chance for a 129% gain before they expire on July 17!
Your 2nd Action to Take:
Buy to Open PAAS July $27 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: |
Pan American Silver Corp. (Nasdaq: PAAS) |
Option Type: |
Put Option |
Expiration: |
July 17, 2020 |
Strike Price: |
$27 |
Option Symbol: |
PAAS200717P00027000 |
Action: |
Buy to Open |
Order Type: |
Limit Order |
Duration: |
GTC (Good ‘Til Canceled) |
Limit Price: |
$2.60 (Anything below $2.60 is great.) |
Note: Do not place a market order. |
|
Once this order is filled, place the following order: |
|
Sell Action to Take |
|
Stock: |
Pan American Silver Corp. (Nasdaq: PAAS) |
Option Type: |
Put Option |
Expiration: |
July 17, 2020 |
Strike Price: |
$27 |
Option Symbol: |
PAAS200717P00027000 |
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 $4.42 if entry is $2.60.) 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 3rd Action to Take:
Sell to Close NTR July $40 Call Options
Here are your details to complete this action:
Trade Recommendation |
|
Sell Action to Take |
|
Stock: |
Nutrien Ltd. (NYSE: NTR) |
Option Type: |
Call Option |
Expiration: |
July 17, 2020 |
Strike Price: |
$40 |
Option Symbol: |
NTR200717C00040000 |
Action: |
Sell to Close |
Order Type: |
Limit Order |
Duration: |
GTC (Good ‘Til Canceled) |
Limit Price: |
$0.50 (Anything above $0.50 is great.) |
Note: Do not place a market order. |
|
Your 4th Action to Take:
Sell to Close ORCL September $52.50 Call Options
Here are your details to complete this action:
Trade Recommendation |
|
Sell Action to Take |
|
Stock: |
Oracle Corp. (NYSE: ORCL) |
Option Type: |
Call Option |
Expiration: |
September 18, 2020 |
Strike Price: |
$52.50 |
Option Symbol: |
ORCL200918C00052500 |
Action: |
Sell to Close |
Order Type: |
Limit Order |
Duration: |
GTC (Good ‘Til Canceled) |
Limit Price: |
$3.40 (Anything above $3.40 is great.) |
Note: Do not place a market order. |
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If you have any questions about today’s trades, email our team at apexprofit@banyanhill.com.
And be on the lookout for your weekly update later today.
Good investing,
John Ross
Editor, Apex Profit Alert