Buying SNOW put contracts.

Snowflake Inc. (SNOW) is a cloud computing company that currently trades for more than 350 times next year’s expected profits.

This speculative valuation leaves plenty of room for the stock to trade sharply lower. And growth companies like SNOW still remain under pressure as Wall Street shifts preferences to more profitable and stable companies.

A recent bear market rally sent SNOW back up to a key resistance level (near it’s 50-day moving average). This sets up a good risk/reward opportunity for a new bearish position ahead of what should be a re-test of recent lows.