2 ms·
Wait til you find out about IV crush
by mizzack 6y ago
Wait til you find out about IV crush
- eloff 6y agoThanks for that, I'll sleep better now.
- filoleg 6y ago^This. It isn't all just about the stock price and expiration date/strike price. Case in point: had friends who bought GME puts 2 days ago. GME stock went significantly up in price since then, and so did my friends' puts. Why did their puts go up in price if the stock price went up? Because IV increased, which pumped the price of options across the board, both puts and calls. When IV crush occurs, the exact opposite happens.