How Can Traders Profit from Selling Options When Implied Volatility Is High?

When implied volatility (IV) is high, option premiums are inflated due to the increased extrinsic value. Traders can profit by selling (writing) options, collecting the high premium, and betting that IV will decrease (a 'volatility crush') or that the option will expire OTM.

This strategy aims to profit from the eventual decline in IV and the erosion of extrinsic value.