Implied Volatility and the IV Crush
Understand how implied volatility shapes option prices and why prices can collapse after an earnings release. OIC instructor Mark Benzaquen explains the IV crush, reversion to the mean, and how IV Rank gives context to whether volatility is high or low.
0:00 What Implied Volatility Measures
0:32 Higher IV Means More Risk and Higher Premiums
1:45 Lower IV Means Less Movement, Lower Premiums
2:17 The Implied Volatility Crush
3:01 Reversion to the Mean Explained
3:59 How Falling IV Drags Prices Down
4:23 IV Rank and IV Percentile
Register to view the complete The Options Wheel Strategy: A No-Hype Educational Breakdown webinar: https://bit.ly/3SEf3U0.
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