Skip to main content

How Can a Trader Profit from a Change in Implied Volatility?

A trader can profit from a change in implied volatility (IV) by using strategies that are sensitive to Vega. If a trader expects IV to rise, they can buy options (long Vega).

If they expect IV to fall, they can sell options (short Vega), often using strategies like straddles or strangles.

How Can a Trader Profit from a Discrepancy between Implied and Historical Volatility?
How Does a Decrease in Network Hash Rate Affect the Difficulty?
How Can an Options Trader Profit from a Decrease in Implied Volatility through a Specific Strategy?
How Can a Trader Use Vega to Take a Position on Expected Volatility Changes?