Buying SHOP put contracts.
Shopify Inc. (SHOP) is a speculative fin-tech name that experienced a brutal selloff over the last few weeks.
But even after its pullback, the e-commerce platform provider still has a $115 billion market cap and trades at nearly 100 times earnings expectations for 2023.
After a brief relief rally, I expect SHOP to continue lower. Buying in-the-money put contracts ahead of the Fed announcement also helps to hedge some of our existing long exposure.
On it’s own, I expect SHOP to trade sharply lower. And if the Fed spooks investors, a decline for SHOP will help offset our potential losses in other more bullish positions.
- Buy (to open) 1 SHOP February 18th $970 Put
- Limit $115.00 or less
- The new position will represent roughly 10.0% of our Spec Model capital
- 13:52 Executed
- Bot 1 SHOP Feb 18th $970 Put @ $111