IV Crush refers to the rapid contraction of implied volatility after known events, and it’s one of the most reliable edges for experienced options traders when used correctly.
This hub explains why volatility collapses, how inflated premiums form ahead of events, and how traders identify these conditions using IV Rank, volatility skew, and historical context. You’ll find practical guidance on structuring non-directional strategies like iron condors and credit spreads to benefit from volatility decay, along with frameworks for filtering out poor setups.
The focus is on repeatable execution, disciplined risk control, and recognising when implied volatility materially overstates the market’s likely move.
When earnings season rolls around, options traders start watching volatility levels like hawks. Stocks like TSLA, AAPL, and NVDA often see implied volatility (IV) surge in the days before results,
If you’ve ever watched a stock move exactly in your favor only to see your options lose value, you’ve been “crushed” by volatility. That’s IV Crush in action. It’s one
You nailed the direction. The stock surged exactly as you predicted after earnings. Yet, when you checked your brokerage account, you were somehow in the red. Welcome to the IV
When earnings season rolls around, options traders start watching volatility levels like hawks. Stocks like TSLA, AAPL, and NVDA often see implied volatility (IV) surge in the days before results, only for it to collapse immediately after. That sudden drop, known as the earnings IV crush, can wipe out the value of options even when…
If you’ve ever watched a stock move exactly in your favor only to see your options lose value, you’ve been “crushed” by volatility. That’s IV Crush in action. It’s one of the most frustrating (and misunderstood) parts of options trading. But how do you know when volatility is actually high? Comparing IV Rank vs IV…
You nailed the direction. The stock surged exactly as you predicted after earnings. Yet, when you checked your brokerage account, you were somehow in the red. Welcome to the IV crush, the single most common reason retail options traders lose money during earnings season. Implied volatility (IV) represents the “fear premium” baked into option prices.…