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Trade of the Day: Apache Corporation (NYSE:APA)

Oil just seems to keep dropping


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We’ve been in a very strong bull market for the last five years or so, so the saying “Sell in May, and go away” hasn’t held true for a while. However, historically, during the month of May until the end of August, the market in general has been down slightly, and it’s usually one of the worst performing times of the year. While I’m not overly bearish this month, I would still recommend exercising a bit more caution.

Last week was kind of slow, but one of the big stories was the price of WTI crude. Oil is in a negative mode right now, as it just seems to keep dropping. Crude took another steep tumble late last week, and now trades for approximately $46, so I’d stay away from energy stocks that have exposure to oil. In fact, I’m recommending one of them for a bearish trade now: Apache Corporation (NYSE:APA).

Buy to open the APA Jul 45 Puts (APA170721P00045000) at $1.30 or lower.

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