IV Crush: What It Is, and How to Trade It

Send us Fan MailThis episode explains "IV Crush" in options trading, a phenomenon where the implied volatility (IV) of an option sharply declines after a significant event, like an earnings announcement or Federal Reserve meeting. The hosts clarify that IV is the market's expectation of future price movement, and it inflates option prices before such events. However, once the event passes, uncertainty vanishes, leading to a rapid drop in IV and, consequently, option values, often to the detriment of option buyers. The hosts, seasoned traders, then propose a strategy to profit from IV Crush by selling options using methods like Iron Condors, rather than buying them, as this strategy benefits from the subsequent decrease in volatility. Read the whole blog article at https://advancedautotrades.com/iv-crash/We help retail traders set up automated options trading to grow their accounts.This is YOUR automated options trading education!On this podcast you will find tips, tricks, and guides on how to grow your auto trading account with low-risk per-trade option spreads strategies.We will show you what you need to know and what actions you need to take.We'll also show you how to make the right investment decisions for your automated trading account!If this sounds like something that could interest you then make sure to subscribe to the podcast now!DISCLAIMER: The content on this channel is for educational purposes only. Advanced Autotrades IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither Advanced AutoTrades nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission or any state securities regulatory.