I think it's safe to say we've had a nice little run in the SPY recently. However, I believe a pullback is in order. According to my charts, the 20 day moving average is right around 189.50. I think that's where we could be heading in the short term. Specifically I think we get that pullback BEFORE June expiration, which is the 20th.
So with that thinking I set up a June 194/195 credit call spread. I went big, playing 20 contracts collecting 35 cents. So all told after commissions I pocketed $660 of premium! Since my max loss on this play is $1,300, I'm strictly playing it for the pullback. I have no plans to hold until expiration.
My stop on this trade is a close ABOVE 194.