If we start printing below the 162'15 this week it's gonna get ugly quick. With the ES_F looking to print new ATHs I am in the camp that the "liftoff" talk accelerates and the bond bears come back in full force, violently. There is a full docket this week for economic news so there won't be a lack of catalysts for this trade: bloomberg.com/markets/economic-calendar/
I am playing this with May'15 159 puts (expiry on April 24), with an average price of 10/64 so far and should provide ample time for a solid selloff. I will scale off 1/3 at each of the targets and ride the rest in to expiration or roll them assuming this goes off without a hitch (since when does a trade ever go off without a hitch???) The first target will get me roughly to a risk free position. The second target is somewhere close to a 500% return. The final leg will hopefully be in the money and a lot higher or get rolled depending on price action.