That would make a little more sense since the short put credit covers the cost of the ratio spread and I could see a settlement between 12 and 16 leading to a nice profit.
Again, I cannot remember exactly, but it was small credit as compared to risk. Based on the sell side color I got, it’s a large real money player (SWF, by the looks of it) hedging his book of equity.
I believe @sle is correct and it was a put sold to further finance the call ratio spread and also because the risk of Dec VIX settling below 11 seemed small given past history. The trade makes money if VX goes sideways with small downside move at worst or moves higher.
You might be thinking of Ruffer, the famous "Mr Fiddy"... I don't think he's the guy behind this concoction. And it was definitely a short put vs a 1x2 call spread, 12, 15 and 25 strikes respectively. The initial credit was smth like $5 - $6 bucks. I'm not sure how much it cost to roll last time.
That seems like too high a credit estimation. 15-25 Call ratio spread is not going to be put on for a net credit but rather a debit since the 25 strike is waaaay OTM. Selling the 12 PUT will get you 1.20 to 2.00 at most since futures do perceive a VIX set floor at about 10ish. I doubt the initial credit was more than $1.50-$1.75.