Not quite that general… it really boils down to buying near the money (high vega) and selling either out of the money or in the money (low vega). By doing so you should have a net positive vega (imp volatility) in which case an increase in implied volatility would be beneficial to the position.
If you’re holding till expiration and don’t care what happens in between or are using spreads with strikes right next to each other it’s less relevant.
Hey Josh. So are you basically saying that (generally) it’s better to choose out of the money strikes if you want to get volatility on your side?
Not quite that general… it really boils down to buying near the money (high vega) and selling either out of the money or in the money (low vega). By doing so you should have a net positive vega (imp volatility) in which case an increase in implied volatility would be beneficial to the position.
If you’re holding till expiration and don’t care what happens in between or are using spreads with strikes right next to each other it’s less relevant.
Hope that helps.