Buying SPOT put contracts.

Spotify Tech (SPOT) developed a popular music streaming app and also broadcasts podcasts and other audio entertainment.

The business is highly competitive with Apple Music likely to create more of a challenge for SPOT in the future. Meanwhile, the stock is trading for more than 160 times expected earnings for this year.

In today’s market, high-multiple tech stocks are being punished. And today’s tech rebound appears to be short lived.

We’ll buy put contracts to bet on a decline for this stock, and a possible break of previous lows near $118. This sets up a good reward-to-risk opportunity as these put contracts will certainly retain plenty of value even if SPOT holds up (because of the volatility in this market right now).