Market had a great pop on the greek news, but I think the momentum will slow down in the near term.
Here’s the trade:
Sell to open SPX Jul4 2130/2135 Bear Call Spread
Do this in 3 tiers:
1st tier: Enter at 1.00, Exit at .50
2nd tier: Enter at 1.50, Exit at 1.00
3rd Tier: Enter at 1.90, Exit at 1.50
This is a smart scaling approach if the momentum does continue.
If the SPX breaks 2135, then exit the trade for a loss
If you want to do something similar in SPY with lower size, use the 213/216 call spread.
Update: July 14th, 2015
Add at 1.50 on second tier, will exit this spread if the price trades back down to 1.00.