Repost: About a week ago I initiated a put credit spread on CB for July. Bought the $30 puts. Sold the $35 puts. Credit of $0.75 Overall, I like the companies fundamentals. It appears to be financially healthy. However, since this is a S-T trade, my main focus is on the stocks technicals. The 5 year chart relects that anytime the stock drops below $35 it recovers to $35 or higher within a few days to a couple of weeks. Thus the reason for my $35 upper strike. If it again tests that $35 mark, I'll then decide whether to close the trade down, or give it a chance to recover, as it has in the past. Part of that decision will be based on the number of days/weeks remaining in the contract.