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iv-crush · Mar 17, 2026 · 6 min read

IV Crush: Why Your Options Lost Money When You Were Right

You bought calls on NVDA before earnings. The stock jumped 2.8% the next morning. But your options still lost money. The culprit: implied volatility collapsed overnight. This is IV crush, and it is one of the most misunderstood forces in options trading.

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iv-crush · Mar 17, 2026

IV Crush: Why Your Options Lost Money When You Were Right

You bought calls on NVDA before earnings. The stock jumped 2.8% the next morning. But your options still lost money. The culprit: implied volatility collapsed overnight. This is IV crush, and it is one of the most misunderstood forces in options trading.

6 min read
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