Everything is priced accordingly...more or less...with options. -- there is no better deal or most bang for your buck strike price than another. you get what you pay for. (the devil is in the details and how you execute the trade...is what makes all the difference in the world.)
Normally I'd be the one pushing that perspective, but actually there is a growing consensus in the literature that fat tail risk isn't priced into options, so the OPs strategy is sound from an expected value perspective. The reason it isn't arb'd away by funds is that it may take a few years to hit the event that makes it pay off and it doesn't model. Certainly not a bad way to gamble a few bucks if you look at it as better than a lotto ticket.
I also would like to add the timing is perfect for a long OTM SPY option play. Going into a new year should be a catalyst for the markets during the first week or so - up or down. I would not want to be a seller of options at this time. Long calls going into 2016 is a good choice.
I put in a stub quote of 50 cents a contract sell to close since I will be out and about today. Looks like someone put in a large spread (Straddle) order of 15K contracts today Feb 16, 217 Calls 14,995 contracts Feb 16, 188 puts 14,995 10:33 this morning. Talk about a wide net.
I bought a few 207 calls expiring this week for .35 yesterday at the close. Nice profit this morning. Last night I decided I would sell half at the open and hold the other half if we were up in the AM... couldn't take it, sold all at around .86
Closed out my position for 11 cents a contract. For a WHOPPING 23% return in 1 day**. **I made 21 dollars in profits after commissions. At least it covered the cost of the assignment fees when I was put stock at 208 a share. or the cost of 5 bags of rocks I bought at home depot today for my gardening.
Countless threads on ET of people selling teenies and blowing out their account and finally one guy decides to buy them and makes 23% on his first posted trade!
I think I am going to take a look a the Feb 05,2016 calls for 25-29 I told my wife I made a 23% return on the markets in one day. she asked how much did I made, I told her 21 bucks, she was not so impressed afterwards. Tally so far. hopefully the next trade grows it more. 12/29/15 Sold CALL SPY 01/15/16 215 STANDARD & PO... 112.69 12/28/15 Bought To Open 12 SPY Jan 15 '16 $215 Call(SPY) @ $0.06 -91.30