Buying AMZN put contracts. (AMZN) brok down sharply as the broad market sold off.

A recent short-term rebound gives us another good bearish entry point. Shares are still quite expensive compared to expected earnings. And recent carnage for retail stocks could bleed into more selling for AMZN.

Consider our overall bullish exposure (expecting a more sustained oversold rebound for the market), I’m happy to add some bearish exposure to help balance our model.

Please note, we’re using June 3rd weekly option contracts to help reduce the cost since AMZN’s stock price is very high and the cost of monthly put contracts expiring June 17th are prohibitively high