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We are in what I would call a rolling bear market. For example, in just the last two weeks or so, Chinese internet stocks have taken a sizeable hit, which hit tech stocks in the United States as well.

The United States is still engaged in a trade war with China, which has led to a dramatic drop in the value of the Chinese yuan. That’s leading to a lot of inflation in the country and is likely to lead to a lot of instability as well. On Thursday, however, officials from both countries announced that they will meet to discuss trade policy later this month, and that led to a nice jump in the market.

China is really suffering at this point because of the tariffs the United States has put on the country. And as long as the trade war is going on, especially given that this is a bearish time of year, I’m going to look for some downside profits in this area.

So, today I’m recommending puts on Altaba Inc (NASDAQ:AABA), now a glorified holding company for Alibaba Group Holding Ltd (NYSE:BABA) but formerly known as Yahoo. I have to disagree that this is the time to own BABA; in my view, the weakness isn’t over yet.

Buy to open the AABA Oct 62.50 Puts (AABA181019P00062500) at $1.20 or lower.

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InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.