Rambling on SPY spreads

Theta on my short SPY leg is up to $0.084 now, nice. I am not really concerned about that as long as the SPY closes under $116 on Friday it makes no difference. Seeing as it is hovering about $115 right now I am running it VERY close as the 10 day ATR is just over $1. In theory, I should be OK. The ATR is narrowing over successive timeframes, the five day (last week basically) is just under $1.

I don't think there are any stock affecting reports to come out today either, unless some get a headstart on earnings and they are good for Q4 last year. A gap up today should also fill at least...that will give me a little headspace.

I am not liking being this close so I will adjust my trade entry plan accordingly. Part of the issue is that the volatility is so darned low the premiums reflect this by not leaving enough value in the farther OTM strikes right now. Rather than trade tight I would be better to hold cash and wait for the cherry pinking setups.

I consider looking at stocks again but I don't like the uncertain variability in the pricing and larger possibility for gaps based on news that can really affect the stock more than an overall index. This, of course, is why they sometimes have better premiums though. Perhaps some smaller $1 spreads might be appropriate AFTER I get the SPY spreads working.

Back to the futures. There at least I can get a higher (and lower for puts) strike to work with even down to the 30 day trades. I will give this plan until the end of the February expiry to see how I feel about these first.... or at least see if the VIX picks up how much room I get in my trades.