IV Crush
IV crush refers to the rapid decline in implied volatility that typically occurs immediately after a major event such as an earnings release. As the uncertainty resolves, the options market rapidly deflates the premium that had been priced in.
Even if a stock moves after earnings, IV crush can wipe out an option's value — because you bought at peak IV right before it collapsed. Understanding IV crush is fundamental to any earnings options strategy.
Further reading: Wikipedia
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