Thank you. Yes, it makes sense to make a profit by replicating (V_H-V_D).
Because Variance= (sum of D^2)/(n-1) , or Vol = sqrt( variance) where D is the distance to the mean.
To replicate V_H or V_D by selling/buying the underlying asset does not seems straightforward/easy to me.
Can you please shed a light on how to replicate V_H or V_D?
Did you mean, buy/sell underlying asset at low/high price based on its mean-reversion?