Buying AMZN put contracts. (AMZN) has broken down sharply as the broad market sells off.

The stock is actually still quite expensive compared to expected earnings. And while investors are still very optimistic about the growth for Amazon Web Services, this selloff could have much farther to go.

As a crowded trade, there could be many investors trapped in this stock and now ready to fearfully throw in the towel. That sets up a good short-term opportunity to buy put contracts, and helps to balance our speculative trading account which is leaning slightly bullish at this point.

This sets up a good reward-to-risk opportunity as these put contracts will retain value even if AMZN holds up (because of the volatility in this market right now).