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What Type of Options Strategy Benefits from a Sudden IV Spike?

Long Vega strategies like buying a straddle or strangle benefit from an IV spike.
Greeks.Live22.11.25

What Type of Options Strategy Benefits from a Sudden IV Spike?

Strategies that are long Vega, such as buying a straddle or a strangle, benefit from a sudden IV spike. These strategies profit when volatility increases, leading to a rise in the option's time value.

They are non-directional bets on the magnitude of the price movement.

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