Dead cat bounce trade

As the S&P drops and bounces to lower lows and lower higs, we see high risk stocks doing exactly the same. Tech carnage has been a daily headline amidst the pull back in the market, and nothing indicates we are at the bottom yet.

Shares of ETSY have been sold off precipitously along with the market, but at a more extreme clip, and we see more room to the downside if the market doesn't reverse course - which we see slim chances of happening. Shares currently trade at $132 down from a high of $307 just under five months ago.

Today we bought the June 2022 $100 Puts on ETSY for $4.80.

This is a moderate risk trade as we intend to hold it into mid-late May, leaving some time premium in the Puts before expiration.