FAQ -- Why are the bid-ask spreads so wide on VIX options?

In addition to their sluggish tracking of the VIX index itself (VIX options below intrinsic value) the In-The-Money VIX options also tend to have relatively wide spreads (.5 or .6 is quite common). Equity option spreads tend to be more in the .1 to .05 range, with more liquid options dropping to only a .01 bid-ask spread.

I am not familiar with the ins and outs of option market making, but I suspect the wide spreads are due to the lack of a direct VIX investment / ability to short a direct VIX investment. The market makers are not speculators--they want to make a relatively small amount of money regardless of where the VIX moves and absent an inexpensive - low risk way to do that hedge they widen the spread to compensate.

You don't have to pay the ask/bid price. I have always been successful knocking at least .1 off the stated price, so if you can afford to be patient you can try splitting the ask/bid spread with your limit order and then if that doesn't work, cancel the order and offer a little more incentive to the buyer-seller.