Buying AMZN put contracts. (AMZN) has moved sharply higher as the current bear market rally has developed.

The stock is now approaching its 200-day moving average — which will likely turn out to be a key resistance area.

At its current price above $140, AMZN is priced for perfection. The stock trades for roughly 60 times next year’s expected profits, at a time when investors are moving capital out of growth stocks and into value plays.

Adding a bearish AMZN position helps to balance our overall Spec Model Portfolio which is currently holding more bullish exposure to profit from the current bear market rally.