CRWD has pulled back sharply, dropping from its recent high of $514 to $424 at last Friday’s close — a decline of about 17%.

The entire cybersecurity sector has been under pressure, with many companies missing analyst estimates. While CrowdStrike won’t announce its earnings for another two weeks, the sentiment has still weighed on its share price.

I took this opportunity to open a cash-secured put while the stock is trading at a lower valuation, locking in a higher premium. Although the share price could continue to trend lower until earnings, I’m expecting this short-dated (one-week) option to likely expire worthless. In the meantime, I’ll be monitoring the market closely. If the price drops too quickly, I’ll look to roll the position out to a later date and lower strike to manage risk and maintain premium income.