Buying SNOW put contracts.

Snowflake Inc. (SNOW) is a data warehousing company — or a “cloud” technology firm that has been trending lower since November.

The company is only expected to generate 15 cents of profit per share this year, growing to 41 cents next year.

While the rate of growth may be impressive, SNOW is still trading for roughly 375 times next year’s expected profits. This makes the stock vulnerable to further selling especially if the broad market weakens.

A recent rebound sets up a good entry point for our new bearish position.

The trade also helps to add balance to our overall Spec Model Portfolio which has been situated to take advantage of a bear market rally.