ZTrader Macro & AI Notes

ZTrader Macro & AI Notes

IV Crush Explained: Why Options Lose Value After Earnings

Earnings options price the move in advance, and that premium disappears the moment results are out.

Dorian's avatar
Dorian
Oct 16, 2026

Dorian

IV CRUSH: THE BASICS

What it is

IV crush is the sharp drop in implied volatility right after a scheduled event, usually an earnings report. Implied volatility (IV) is the volatility number backed out of an option’s market price. When the report is out, the uncertainty is gone, and so is the extra volatility priced into the options.

There are Two form…

Subscribe for free to continue reading

Enter your email and get every post from ZTrader Macro & AI Notes.
Already have an account? Sign in
© 2026 Liao Wunkai · Privacy ∙ Terms ∙ Collection notice
Start your SubstackGet the app
Substack is the home for great culture