Why Do Sellers of Options (Writers) Prefer to Sell When Implied Volatility Is High?

Option sellers, or writers, collect a premium in exchange for taking on the obligation to buy or sell an asset. They prefer to sell options when implied volatility is high because it means the premiums are inflated.

This provides a larger upfront cash payment and a wider buffer against adverse movements in the underlying asset's price. The seller's strategy is often based on the belief that the actual, or realized, volatility will be lower than the high implied volatility, allowing them to keep the larger premium as the option's time value decays.