Double trouble: CFC

I am considering a put position in Countrywide Financial. The company stock dived for the first time in a very long time. I think that this is the end of the refinance boom due to rising interest rates and this scenario will hurt CFC. Also with the dollar hitting new lows everyday, the possibility of a "faster than expected" interest rate hike remains high. The earnings growth for CFC which started in 2001 will decelerate in this scenario.

The second business that CFC is in - insurance. Spitzer had been suing other companies and he will eventually come to CFC.

The trade that I'm considering is a July put. That'll be good time for Spitzer as well as Greenspan to make their intentions clear.

Resistance:

1. Around 33.11 (the curent 200-day MA)
   
2. 34.35 : The high price of the gap-down on 10/20/2004
   

Support:

1. Around $28 (May low/base support area)