What is IV Crush in Options Trading?
5paisa Research Team
Last Updated: 30 Apr, 2025 03:22 PM IST

Content
- What is IV Crush?
- Real-World Example of IV Crush
- Why Does IV Crush Happen?
- Who Gets Affected by IV Crush?
- How to Benefit from IV Crush
- How to Protect Yourself from IV Crush
- Final Thoughts
Options trading offers unique opportunities to profit from stock price movements without owning the actual stock. However, option prices are influenced by many factors, and one of the most important is something called implied volatility (IV). A sudden change in IV, often known as an IV Crush, can have a major impact on the value of an option — sometimes in surprising ways. In this article, we will break down the concept of IV Crush, why it happens, who it affects, and how traders can benefit from it with careful planning.
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