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Selling options is way better than buying them. Time value decay works against you as the buyer. Who likes being right on the market but making little, nothing, or losing because of time value decay?

I don't trade VIX options but if I was going to, I might do a trade like this. SELL -10 VIX 100 AUG 11 15 PUT @.25 LMT I would sell 10 VIX August 2011 $15 put options for a $250 premium. The margin requirement would be $2354. This gives a 10% ROI on the trade if the VIX options expire OTM...

The option premium will be $0 if it expires OTM which is what you want since you want to keep the premium. The option premium will be worth the intrinsic value of a put (strike price minus actual price) if it expires ITM which is what you don't want. Nothing ever "takes care of itself"...