In relation to options strategies, which one benefits from low volatility?

The strategy that benefits from low volatility is the short straddle. This options strategy involves selling both a call and a put option with the same strike price and expiration date. The primary goal of a short straddle is to profit from minimal movement in the underlying asset's price.

When volatility is low, the price of the options tends to decrease. Since the seller of the options (the investor using the short straddle strategy) collects premiums from both the call and the put at the outset, if the market remains stable and does not experience significant price movement, the options will likely expire worthless. This allows the seller to keep the entire premium received as profit.

In contrast, strategies like long straddles and long strangles benefit from high volatility, as they require significant price movement to be profitable. Bear spreads typically aim to profit from a decline in the underlying asset's price but do not specifically depend on low volatility. Therefore, the short straddle is the only strategy among the choices that specifically thrives in a low volatility environment.