After a week of wound licking I am ready for a new position in the market. With SPX at 1405 and projected range of 1400-1500 in to the new year, the area around 1400, especially given elevated vix, is excellent for selling atm puts. I am prepared for perhaps one final shakeout so I take half the position now and half on an event related move higher or on a shakeout between 1390 and 1400.
The vix is at 18.6 vs a realized SPX 20-day volatility ~10, which strengthens the case of selling option premium.
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