Volatility Outlook

Price
Outlook

Low
(volatility is expected to increase)

High
(volatility is expected to decrease)

Bullish

Long Call
Long (Bull) Call Spread
Long OTM Call Calendar
Long OTM Call Diagonal
Short OTM Put Butterfly
OTM Call Backspread / Ladder

Short Put
Short (Bull) Put Spread
Short OTM Put Calendar
Short OTM Put Diagonal
Long OTM Call Butterfly
OTM Put Ratio-spread / Ladder

Neutral

Long ATM Call or Put Calendar
Long Call or Put Condor / (Long) Iron Condor
Long Call or Put Diagonal
Short ATM Butterfly

Short ATM Call or Put Calendar
Short Call or Put Condor / (Short) Iron Condor
Short Call or Put Diagonal
Long ATM Butterfly / (Short) Iron Butterfly
Short ATM Straddle
Short OTM Strangle

Bearish

Long Put
Long (Bear) Put Spread
Long OTM Put Calendar
Long OTM Put Diagonal
Short OTM Call Butterfly
OTM Put Backspread / Ladder

Short Call
Short (Bear) Call Spread
Short OTM Call Calendar
Short OTM Call Diagonal
Long OTM Put Butterfly
OTM Call Ratiospread / Ladder

Bullish OR Bearish

Long ATM Straddle
Long OTM Strangle