Trading strategies with lower spread?

You cannot get an closer to trading volatility. Trade VIX options accordingly .. althouthe the spreads close to 1 Delta are widers, you can just expose less capital to wait for some profit....

 

Any thoughts about how options on VIX should be priced?

 

Options on VIX are priced off of corresponding futures.

 

Can you please elaborate more on the pricing of VIX options and VIX futures?

 

See here.