Implied Volatility (IV)
Implied volatility is the market's expectation of a stock's future price swings, embedded in its option prices. It rises into an earnings date as uncertainty builds and collapses right after the release once the event resolves — the phenomenon known as IV crush.
Seen in a real earnings call
“…gross margin. And then when we think about Q4 and given our guidance for the full year, that does, as you mentioned, imply we expect gross margin will be lower. And so there's 3 things I'll mention as we think about that. First, there…”PVH Corp. (PVH) — earnings call, September 3, 2026