Understanding IV Crush
An excerpt from our Academy Module.
Executive Summary: Understanding IV Crush
Implied Volatility (IV) is a crucial concept in options trading that represents the market's forecast of a likely movement in a security's price. IV Crush refers to the rapid decline in the price of an options contract due to a decrease in implied volatility, often occurring after the resolution of a market event like earnings announcements or regulatory decisions. This lesson aims to clarify why understanding IV Crush is essential for trader...