I'm sure all novice investors have gotten the idea to buy options before earnings in hopes of making outrageous money on big moves, only to be brought back down to earth by the IV crush concept.
So yesterday (Jan 20) I bought one NFLX $400 PUT Exp. 1/28 for $56 in hopes of learning about the infamous IV crush from firsthand experience. This morning (Jan 21) I sold said put for $1500 and learned absolutely nothing of IV crush.
Why didn't my put get crushed? Can someone actually explain how it works and when it does/doesn't happen? Thank you!
Submitted January 21, 2022 at 09:49PM by skyeinthebowl https://ift.tt/3AqjoNp
