Frankly, I don't use debit spreads very often, since they require a certain degree of directional certainty which I ordinarily do not have. Additionally, they are not high probability plays in the vast majority of cases.
However, I have a certain degree of certainty that volatility will increase from here and, ironically, the volatility in volatility is quite low, and in a low volatility environment, an options trader should move away from selling premium and into low volatility plays like debit spreads, calendars, and the like.
Consequently, I am going long VIX here, risking 1 to make one on the notion that VIX will be >16 some time between now and expiration:
Nov 18th VIX 15 Short Call/17 Long Call debit spread POP%: 50% Max Profit/Max Loss: 100/contract; 100/contract Break Even: 16.00
Notes: As an alternative, look to go long via VIX with a similar spread with your short call slightly out of the money and your long call slightly in or at the money. You can naturally also consider UVXY, but the bid/ask spreads on that instrument are usually wide (i.e., illiquid).
Out for a small profit on this increase in volatility. I'll look to be more patient and get in lower ... .
NaughtyPines
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With expiration nearing, I figured I'd bail on this setup at slightly above scratch ... . Got out for a .14 credit, which just about covers fees/commissions for the two contracts I put on.