It's basically what your thinking of doing. The basic strategy. You can also sell positions on margin and profit from time decay if the price goes sideways all day. Look up basic options strategies.

SPY is an ETF based on the s&p500. It follows the market. VWAP is volume weighted average. You can set up your chart on your brokerage app to display the VWAP. It's like an anchor the price rebounds to after reaching highs or lows. It's middle ground. If you buy an at the money put and call when the price is at VWAP, you can profit on the price movement of both directions with equal chances of the same movement happening either way. If you set limits on your profits, and don't try and time it yourself you can do good.

Edit: It also protects you so if it runs away in one direction you can cut the loser off and let the other one run with the profit.

Just buy an ATM put and call on SPY when it's sitting at VWAP, go about a week or two out and you should be able to profit from both a little if you're not greedy.