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+Chapter 37: How Volatility Affects Popular Strategies 777 
+deeply in-the-money, after which one gets assigned on the short put option, followed 
+by the underlying then dramatically rising in price.) 
+The lesson to be learned is this: If one is considering using bull spreads in which 
+at least one of the options is at- or in-the-rrwney, then a call bull spread is a superior 
+choice over a put bull spread. Early assignment is not really a consideration for most 
+call spreads. 
+In both cases, however, a more serious problem exists, and that is that the 
+spread does not widen out much even when the stock makes a nice bullish move. 
+Thus, once again it is actually better to buy a call option in most cases than to use the 
+bull spread, because profits are larger and an increase in implied volatility is a favor­
+able thing for an outright call buyer. 
+Note that these effects are similar, but much less pronounced, for out-of-the­
+money put credit spreads. Still, it should be noted that an increase in implied volatil­
+ity will harm an out-of-the-money put credit spread, too. Hence, if the underlying 
+goes into a rapid fall (crash, plunge), then implied volatility usually increases quickly 
+and dramatically. So an out-of-the-money credit spreader is hit with the double 
+whammy of expanding implied volatility and the fact that the underlying is fast 
+approaching the strike price of his options, . thereby expanding the price of the 
+spread. 
+PUT BEAR SPREADS 
+What about the put spread in a bearish situation? In a vertical put spread one buys 
+the put with the higher strike and sells the put with the lower strike to construct a 
+simple put bear spread. Actually, a sudden increase in implied volatility is of help to 
+the bear put spread. That is, the spread will widen out slightly. To verify this, look at 
+Table 37-8 again, only now imagine that one is buying the spread for a debit. Note 
+that the smallest debit is at the lower implied volatility- 9.15 debit with IV at 30%. 
+If implied volatility were to instantaneously jump to 80%, the spread would widen 
+out to 11.33 debit. A very quick profit could be had. So there's a difference right away 
+between a debit call bull spread (which loses money when implied volatility sudden­
+ly increases) and a debit put bear spread. 
+Unfortunately, the other major drawback - that the spread doesn't widen out 
+much if the underlying makes a favorable move - is still true. Figure 37-9 shows a 
+bear put spread, 30 days hence, for two different implied volatilities. Once again, the 
+lower-volatility spread widens out more quickly, because both options tend to go to 
+parity in that case. In fact, one can see on the graph that there is early assignment 
+risk in the low-volatility case, below a price of about 77 on the stock. That is not a