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
“…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