Whether IV is high or low, a 1% change in IV will have the same impact on a short premium strategy. Why are we focused on putting on short premium inthen?
The reason that a 1% change inhas the same impact no matter the level of IV is because is mostly constant over a range of IVs, but varies due to and underlying price. Although the P/L is the same regardless of IV level, the higher the IV, the higher the . This means that the likelihood of a 1% reversion is greater when IV is higher.