Strangle Trades in the VIX

The CBOE Volatility Index

is off another 2.70% today, down to $24.83. I am seeing heavy action in the July contract where 5,100 of the July $37.50/22.50 strangles appears to have been sold for $3.40. This would give the trader the ability to take in the net credit if the VIX settles between $39.90 and $19.10. This says something about their vol expectations; they are basically saying that the recent range to VIX has been trading in will hold (roughly 40-19). I tend to agree with that premise; this is a smart initial transaction to play vol.