Actually I thought they were cheap as well, trading just over parity of the weekly vix future. I bought some on the close yesterday at 1.15, watched them go to .60 this morning, and scratched them a bit later. Now trading 1.60. Oh well. Hopefully you have some as well.
It worked for two days.... its the timing that counts. Like anything else. You're right though, trading a derivative of a derivative is not necessarily the safest way to go.
Of course buying OTM options -- on any security -- is a loser most of the time. The occasional big gains pay you back.
And to add to Donna (who as always is correct)...the calls were priced to trade at the intrinsic value as a synthetic equivalent of owning the VX future outright... so some of the comments are simply not understanding the options or bothered to check the price, strike and underlying. (ha ha skew...and otm....lol) . Buying the call at that price would be the same as going long the weekly VX option expiring this morning.