CatalystDerivatives
BE WARY OF AN IV CRUSH! CALL OPTIONS CAN ALSO GET DECIMATED EVEN IF THERE’S A GAP UP ON MONDAY IF THE VIX GETS CRUSHED. BE NIMBLE 🤝. HTTPS://T.CO/PEXP6AEPF9 — VIA @MARKET_SLEUTH
Implied volatility crush threatens call option profits despite gap-up, as VIX collapse erodes premium.
What changed
BE WARY OF AN IV CRUSH! CALL OPTIONS CAN ALSO GET DECIMATED EVEN IF THERE’S A GAP UP ON MONDAY IF THE VIX GETS CRUSHED. BE NIMBLE 🤝. HTTPS://T.CO/PEXP6AEPF9 — VIA @MARKET_SLEUTH
Why it matters
Implied volatility crush threatens call option profits despite gap-up, as VIX collapse erodes premium.