Delta heding - change in volatility - Is my justification right?

If we are shorting call options and implied volatility rises - why does our portfolio value fall?

Is this justification correct:

Vol rising = option value rising. If we are short calls then the options are likely to be exercised against us, therefore value falls.

Conversely if Vol falls…

Vol falling = option value falls. If we are shot calls then options are less likely to be excercised against us, so portfolio value rises.

Can someone please kindly explain the above with puts too?


Too deep.

When volatility increases, call prices increase, and you’re short calls.

Bob’s your uncle.

Thanks Bill

You’re welcome.