Buying SHOP put contracts.

Shopify Inc. (SHOP) is an e-commerce platform serving small and midsized businesses.

The company is not profitable this year and will only earn $0.07 per share in 2023. Yet the company still has a $41 billion valuation. This leaves plenty of room for SHOP to fall.

Shares have moved higher thanks to the bear market rally. But now, SHOP is running into a key resistance area and the bear market rally may be rolling over.

In today’s market, high-valuation growth stocks like SHOP are being punished. And the recent bear market rally sets up a good risk / reward scenario for us to roll out a new bearish position for SHOP.

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