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.