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
“…look into it. Obviously, we're operating in unique and volatile times, so it doesn't have perfect line of sight, but those are the fundamental assumptions that are implied in our look into 2027. Ramoun Lazar (Analysts): Got it. Just the enabler of that longer-term organic…”Amcor plc (AMCR) — earnings call, September 10, 2026