Why Did IV Drop on My Options?
IV drop causes — post-event calm, range session, skew normalization, IV crush.
Quick Answer
IV falls when market prices **less future movement** — after events or in calm ranges. Buyers hurt from IV crush.
Triggers
- Post RBI/budget/earnings
- Midday range
- Gap stabilisation
- Near expiry
- Global VIX off
Protect
Check IV on chain before buying.
Frequently Asked Questions
- Should I act on this answer alone?
- Use it as immediate context, then confirm on the live option chain and OI tools before sizing a trade.
Key Takeaways
- IV = uncertainty price.
- Buyers need stable/rising IV.
- Sellers benefit from crush.
Related Articles
- IV Crush: When Volatility Collapses After EventsIV crush destroys option premium after events — why your correct direction trade can still lose on Nifty options.
- Vega Greek: Sensitivity to Implied VolatilityHow vega affects option premium when IV rises or falls — critical around events on Nifty options.