Buying ETSY call contracts.

Etsy Inc. (ETSY) is an e-commerce platform that could be a perfect play for a bear market rally.

The stock was a spectacular “stay at home” winner during the pandemic, and shares have now pulled back near where they traded in the early days of Covid.

But while ETSY certainly didn’t deserve to trade near $300, its current price near $87 may turn out to be far too cheap.

The company is expected to earn $4.36 per share next year. And Wall Street projects 31% profit growth in the following year as well.

Shares trade at a cheap valuation for ETSY’s actual profits. And shares are starting to find support.

If we get a true bear market rally, this one-time high-flyer could ignite and quickly move as high as $150.

The stock looks poised for a breakout after treading water during the month of June.