How does IV crush after earnings affect the cryptocurrency market?

3 answers

• jerald lisingJun 01, 2025 · 6 months ago
  IV crush refers to the decrease in implied volatility of options after a company's earnings announcement. In the cryptocurrency market, IV crush after earnings can have a significant impact on option prices and trading strategies. When IV crush occurs, the options become less expensive, making it more challenging for option holders to profit from price movements. Traders need to adjust their strategies accordingly to account for the decrease in implied volatility and potential changes in market sentiment.
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• duregJun 13, 2020 · 5 years ago
  IV crush is like a deflated balloon for options traders in the cryptocurrency market after earnings. It's when the excitement and anticipation surrounding the earnings announcement deflate, causing a drop in implied volatility. This can make it harder for traders to make profitable trades using options. It's important for traders to be aware of IV crush and adjust their strategies accordingly to navigate the post-earnings period in the cryptocurrency market.
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• AaloveApr 04, 2025 · 8 months ago
  In the cryptocurrency market, IV crush after earnings can have a significant impact on option prices and trading strategies. Traders need to be aware of this phenomenon and adjust their positions accordingly. For example, if you're a trader on BYDFi, you might consider selling options before earnings to take advantage of the higher implied volatility and then buying them back after earnings to benefit from the IV crush. However, it's important to note that IV crush is not exclusive to BYDFi and can affect the cryptocurrency market as a whole.
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