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).
- Buy (to open) 3 SPOT May 20th $165 Puts
- Limit $27.50 or less
- The new position will represent roughly 7.7% of our Spec Model capital
~~~~~~~ - 10:53 Executed
- Bot 3 SPOT May 20th $165 Puts @ $27.50