IV Crush
IV crush is the sharp fall in options implied volatility immediately after an earnings release, as the event uncertainty that inflated option premiums disappears. It can leave option buyers with losses even when the stock moves in their favor, because the volatility component of the option's value collapses.
Seen in a real earnings call
“…priced by the market at a multiple of almost -- well, at the time, it was north of 1.3x NAV. The implied value of the vessel was actually higher than what we achieve. But the second one is -- and this is where it gets a little bit kind…”Frontline plc (FRO) — earnings call, August 28, 2026