Which strategy would typically be used by an investor anticipating high market volatility?

Choosing a long straddle strategy is a common approach for an investor anticipating high market volatility. This strategy involves purchasing both a call option and a put option for the same asset at the same strike price and expiration date. The goal is to capitalize on significant price movements, whether upwards or downwards, which are typical in volatile markets.

When volatility is high, the price of the underlying asset is more likely to experience large fluctuations. A long straddle allows the investor to profit regardless of the direction of the move. If the asset's price rises significantly, the call option becomes valuable. Conversely, if the price drops significantly, the put option gains value. This dual exposure to potential price movements makes the long straddle particularly effective for investors expecting volatility.

In contrast, strategies like bear spreads or short strangles involve more specific market predictions and can limit potential profits, making them less favorable for investors who are uncertain about the direction of market moves in high volatility scenarios.