Chapter 06 · Section 6.1

Implied Volatility

An increase in implied volatility will:

a) make your spread more profitable.
b) make your spread less profitable.
• c) have no effect on the profitability of your spread.
  No. Before expiration, options will always be affected by changes in volatility. The only exception to this rule is when one has entered into a locked trade, such as a box.