is low volatility or high volatility better for making quick return in options trading

Low volatility can be advantageous for making quick returns in options trading, but it's not the only factor to consider. Here's why:

1. Lower premiums: During low volatility periods, options tend to have lower premiums. This can make it cheaper to enter long option positions, which is beneficial for quick returns since you're paying less upfront.
2. Short-term strategies: Low volatility environments can be suitable for shorter-term strategies, such as scalping or day trading, where the focus is on capturing small price movements. These strategies can be effective if you're looking for quick profits.
3. Risk management: Lower volatility generally means less risk, which can be attractive for traders who are risk-averse or prefer less volatile markets. This can help protect your capital during times when rapid price changes are less likely.
4. Implied volatility: While low volatility means lower implied volatility, which can lead to cheaper options, it's important to note that implied volatility is a key factor in options pricing. If you believe that implied volatility is about to rise, you might see opportunities to profit from the increase in option prices, even if the underlying stock's price isn't moving much.

However, high volatility can also offer opportunities for quick returns, especially for traders who are comfortable with higher risk:

1. Higher premiums: In high volatility environments, options tend to have higher premiums due to the increased expected price swings. This can mean more lucrative opportunities for traders who are willing to take on the higher risk.
2. Long-term strategies: Traders who have a longer-term perspective might find high volatility more favorable, as it can lead to greater price movements over time, potentially resulting in larger returns on their options positions.
3. Volatility trading: Traders who specialize in volatility trading can capitalize on the price swings associated with high volatility, using strategies like straddles or strangles, which can profit from anticipated significant price movements in either direction.

In conclusion, whether low or high volatility is better for making quick returns in options trading depends on your individual risk tolerance, trading style, and market outlook. Both environments offer potential opportunities, and successful traders often need to be adaptable, using a variety of strategies to capitalize on different market conditions.