When Harley-Davidson Inc (NYSE:HOG) skidded after an earnings bust, we were able to take a fantastic triple-digit profit on Tuesday in the HOG puts we recommended last week, and we want to keep the short-side strategies in play. We’ve opened a new bearish trade on Qihoo 360 Technology Co Ltd (NYSE:QIHU).

Tuesday’s selloff in Qihoo 360 was at least partially caused by the announcement (after the Chinese market closed) that more short-selling of Chinese stocks would be allowed. This was probably an effort to curb the enthusiasm that traders in China have had for stocks listed in Hong Kong over the last two weeks, which could have created a disruptive asset bubble.

The announcement has traders on edge, and we expect that Chinese stocks (not just those listed in Shanghai or Hong Kong) at resistance are particularly exposed to a risk of decline. We picked Qihoo 360 because its technical picture suggests a downturn, but it has also struggled to maintain positive expectations, as its shift to mobile has lost momentum in the face of significant competition.

Buy to open the QIHU June 57.50 Puts (QIHU150619P00057500) for a maximum price of $4.40.

Again, be sure to take profits in the HOG puts if you haven’t already.  We were happy with our 208% return, and you know the old saying: Pigs get fat, HOGs get slaughtered.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

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