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
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• 13:52 Executed
• Bot 1 SHOP Feb 18th $970 Put @ $111