I took August 22 Puts because I wanted to avoid the theta hit of July's and chose a strike that would get me ITM at around 3:1 Reward/Risk. I had no idea the downgrade would come but it gapped price well ITM and I took profit.
Wider Market Outlook
My eye is on the technology sector this month. Seasonally it is set to move one way or another and so far during the first few days of the quarter the best trades have been in this sector. Money flowing out to technology while simultaneously moving to "safety" plays suggests traders are getting risk averse.