Implied Volatility Crush: What Happens To IV After Earnings Explained

"volatility crush" refers to a sudden, sharp drop in implied volatility that triggers a similarly steep decline in an option's value. This video explains that phenomenon

[peterthon]

IV crush only happends on earnings? I had puts on DWAC for a sell the news into Trumps conference and the stock went to my side but when the market open I noticed my contracts didn't moved.
You think that was an IV crush or maybe others factors affect it?

[steven]

Good stuff man, small channel but quality content

[SejalPatelDrSej]

Haha you wrote the secret at the end but didn’t mention it...

[amyx]

I still don’t get it.... I don’t think I get what options are. I thought they were, you buy/sell at this price, here’s a fee to let me use your shares for this?

[kikook]

I accidentally did a really shitty call once that made me 900 dollars because Apple rocketed in one day. After watching many videos like these, I realized how fucking lucky I was.

[yazan]

No wonder why my Tsla calls went down after the stock went up $50 🤦‍♂️

[josepardo]

Great information. How long should we wait after an earning report on a particular company? Should we wait until the whole season is over, or is just need to wait a few days for the particular stock??
Thanks again.

[pradiplamsal]

Great explanation.
Things I learned:

-vix inc when falling and sideways or dec when rising stocks..except for earnings where it drops regardless
-otm options have higher ivs

[tloathe]

How would one go about creating/ finding the profit loss chart that you showed at 4:19?

[Will-ojun]

The fact that ROKU is back to 100 bucks hurts 😕

[sef]

Wouldn’t just using the break even price explain everything better? Yes you had a 300$ call but the break even was like 301$ so if the price just made it to 300 then your call would be junk.

[jahidthechosenone]

I knw that I'm late but I'm confused about the math for the expected move...I took $262 x .59 x days to expiration which would be 21 right? I'm missing something because I'm not getting $37. Can you explain what I'm missing?

Edit: I figured it out, I didn't realize that that symbol meant the sqr of the days until expiration/ sqr of calendar days

[cottondai]

Such a clear explanation. Thank you brother.

[christopher]

so your open p&l whether if it's positive or negative it would be the mark price that it is showing you?

[fsneaks]

What about if the contracts end up in the money after earnings? Does this apply at full effect or what if they end up $5 otm

[donzell]

Learned a lot here. 😫 APPL 7-27-21 IV Crush

[dalvi_]

One would rather day trade options in the direction of the earnings call rather than buy options before the earnings call

[Friderikas]

Great video and nice explanation! I enjoyed it that it is straight to the point!

[Naruu]

Hi, do you know how to make this expected move formula within Think or Swim for Option trading?

[Alwayspackard_]

How does this affect in the money calls?