Options

Volatility Crush

Definition

A sharp drop in implied volatility after a major event (e.g., earnings), causing option premiums to collapse rapidly.

Example
Post-earnings volatility crush hurts long straddle holders. 115 CRYPTO TERMS (Batch 3 – New) Gas Fee Category: Crypto Definition: The fee paid to execute a transaction or smart contract on a blockchain network like Ethereum. Related Terms: Layer 2, Tr
Frequently Asked Question
What is Volatility Crush in trading?
A sharp drop in implied volatility after a major event (e.g., earnings), causing option premiums to collapse rapidly.
APA Citation
Clark, R. (2025). Volatility Crush. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/volatility-crush
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.