After last week’s panic attack in the equities market we’ve seen an incredible bounce back. While S&P 500 Index Options (CBOE: SPX) were staring into the abyss last Wednesday, it’s now surged back a quick 4% over the last three trading sessions leaving many options trading investors to wonder, “Whaaaa happened?” What’s perhaps more impressive is the speed at which all the fear dissipated out of the market.

The CBOE Volatility Index (CBOE: VIX) at thirty? What VIX at thirty? That was so last week. The VIX is down a quick 33% to the 20 level in three trading sessions leaving option traders to wonder whether the sentiment pendulum has swung too far in the other direction. Have we gotten too complacent too quickly?

The SPX has some significant resistance to fight through in the near term if it’s going to continue this march higher. Both the 20- and 50-day moving averages loom closely overhead along with the pivotal 1300 level. Skeptics to the recent surge in equity prices that are expecting more aftershocks may consider selling call verticals on the SPDR S&P 500 ETF (NYSE: SPY) as a means of accumulating bearish exposure. Short call verticals (sometimes referred to as bear call spreads) provide a high probability alternative to the purchase of put options. They also offer a limited-risk, limited-reward payoff.

Consider shorting the SPY April 134-137 Call Vertical Spread for a net credit of 46 cents. To enter the position you would sell to open the SPY April 134 Call while simultaneously buying the SPY April 137 Call.

SPDR S&P 500 ETF (NYSE: SPY)

Follow Tyler Craig on Twitter@TylersTrading.