In the current markets, vol has been very high. If I were to believe that this vol would collapse and decrease a lot, what would be the best strategy to approach this if I would like to remain positive theta? Would butterflies be the right strategy ?
Yes, it's a fine approach, and even better if you bias the fly delta in the direction of your expected market move. You can still get run over, but there's no way to steer clear of that truck if your guess on direction is seriously wrong.