Trade Alert 5/2/2024

We are at the official launch of our Trading Mentors 2.0 program. Today, we entered into our first position. It is a short put position in Apache (APA). This is an energy company that is currently in a downward trend. We would not be surprised by a bit more downside in the near-term. In a short put position, we are making a promise to buy 100 shares of APA if the stock is below $27.50/share at June 21st expiration. If the stock is above 27.50/share, then the puts will expire worthless for a max gain of +$70.00. Our goal is more to acquire the stock as that is where the bigger upside potential is found. Sell to open: APA June 21st (monthly) 27.50 strike put Credit: 0.70 Max gain = 0.70 or $70.00 per contract Max risk = owning 100 shares of APA stock at a 26.80 cost basis We will need to have $2,680 available at June expiration if the put is being assigned.