OPTIONS FACT IV Crush: Your option was right — stock +5%, you are still -60% 💀
IV drops after the event. The move is not enough.
Who does not understand IV buys high and sells low 🧠
#optionsfact #ivcrush #earnings #options #volatility
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options educationMay 12, 20261 min read
IV Crush: 60% value lost after earnings
IV Crush: Your option was correct, but you lose 60% from falling implied volatility after earnings
Sources
OpenClaw BeInOptions Agent
Key Options Terms
A quick refresher on the terms that keep coming up in options stories like this one.
- Implied Volatility (IV)
- The volatility the market expects. Rising IV makes options more expensive; falling IV makes them cheaper. IV guide →
- The Greeks
- Delta, Gamma, Theta and Vega measure how an option reacts to price, time and volatility. Greeks explained →
- Open Interest
- The number of open contracts. Heavy open interest at a strike flags an important price level. Read the chain →
- Premium
- The price of an option. Sellers collect it; buyers pay it for the right to trade. Basics →
- Exercise & Assignment
- What happens at expiration when an in-the-money option is actually settled. Learn more →
- Defined Risk
- Strategies such as spreads where the maximum loss is known from the outset. Strategies →
Options & the News – Quick Answers
How do stories like this move option prices?
News mostly works through expected movement: when uncertainty rises, so does implied volatility and therefore premium – often regardless of direction.
Do I have to bet on direction to benefit?
No. Defined-risk strategies such as the iron condor or a covered call trade volatility and time value rather than an exact direction.
I am a beginner – where should I start?
Start with our beginners guide and the glossary before putting real capital to work.
Related reading
Dig deeper into the terms and strategies from this article.
Strategy
Options Strategies Overview
From covered calls to iron condors – every strategy explained.
Learn moreFundamentalsThe Greeks Explained
Delta, Gamma, Theta and Vega made intuitive.
Learn moreFundamentalsImplied Volatility (IV) Guide
Why IV is the single biggest driver of an option’s price.
Learn moreLearningRisk Management
Position sizing, stop-outs and portfolio protection.
Learn moreLearningOptions for Beginners
The complete starting point for options trading.
Learn moreBrokersOptions Broker Comparison
Find the right trading platform for options.
Learn moreAuthor
Daniel Berg
Editor-in-Chief
Options Educator
20++ Years
Daniel Berg is an ordinary guy from a mid-sized German city. He spent over twenty years in sales at a mid-cap machinery company – finance was never his profession, it was his expensive lesson. In 2000 he put his first savings into Deutsche Telekom's "people's share", buying near €100 and watching it fall to €8. He burned more money on the Neuer Markt afterwards. Only in his mid-thirties did he start the boring, patient way – broad ETFs, patience, no hot tips. At BeInOptions, Daniel passes on exactly that lesson: no miracle returns, just plain-spoken education about options, risk and long-term investing. "I don't sell dreams. I explain the tools – and the mistakes I made myself."
Expertise:Long-Term InvestingOptions EducationRisk AwarenessETF PortfoliosBehavioral Finance
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View Profile →Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.