It is a directional trade, and if the direction is wrong he loses $2625. In this case he won. VIX closed at 16.69 and his profit was about $2700 for a$2625 investment. If the VIX had finished under 15 the position was a loser. For comparison, try this one: http://seekingalpha.com/article/1210461-insure-your-portfolio-while-it-s-cheap-another-pullback-could-be-ugly-and-deep
Take a look especially at the author's comments. The position is meant to be rolled so it is always at least 60 days out. Profits from a volatility spike and costs not much.
