NEW YORK (AP) — Stocks had their worst day of the year Friday after Greece hit a roadblock on its way to a critical bailout.

Seriously, with a headline like Stocks fall sharply as Greek deal is held up you would think that the Dow just lost 300-500 points. Nope, just a paltry 0.71%. Yes, let me repeat 0.73%.

The worst day over the past 2 ½ months has been 0.73%. Okay, so with that being said, in which direction do you suppose the market will move  over the short to intermediate-term move? Would you say the risk is now to the upside? Do you think probability lies with the bulls or bears after an average years worth of market gains in just 28 trading days?

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Okay, I think we all know my bias at this point. For those who don’t, it’s bearish.

I am not going to bother going into why I am bearish. Just read my posts from the last few weeks to truly understand why I am currently bearish.

So, I want to talk about something more important today – strategy. More specifically options strategies.

With options, you can control with precision, the amount of risk and type of risk you wish to take in any given trade in any situation.

One of my favorite strategies is selling vertical call/put spreads like in the Theta Driver Options Strategy.

Let me explain. And please understand I am keeping it simple for conceptual reasons. Once, you understand the basics we can really dig deep to understand how to apply risk-management.

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As you all know I have had a bearish tone since mid-January.

The market had moved into a short-term overbought state, excessive optimism had pushed into the market and seasonality had entered a historically bearish.

And over the past several weeks all of the aforementioned have pushed further and further into a bearish state.

But, the bulls have yet to waver and the grind continues. Since December 19th the S&P 500 (SPY) has climbed over 12% without pause.

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