Eureka! Sold SPY Jun 07 '13 $167 Puts @ $1.88 + Bought SPY Jun 14 '13 $165.50 Puts @ $1.59...

I think I finally understand put spreads!

Net credit of $0.29... 

1.If assigned, entry point would be 165.12, in which case I have 165.5 puts

2.If unassigned, I would bank $0.29 per share...