How Does a Major Cryptocurrency News Event Typically Affect IV? ⎊ Path

How Does a Major Cryptocurrency News Event Typically Affect IV?

A major cryptocurrency news event, such as a regulatory announcement or a network upgrade, typically causes a sharp increase in implied volatility (IV). This is because the market anticipates significant potential price movement, increasing the uncertainty and thus the option's time value.

IV often drops quickly after the event passes.

What Is “IV Crush” and When Does It Typically Occur in Crypto Options Trading?

How Do Major Market Events (E.g. Halving) Typically Affect Implied Volatility in Crypto Options?

How Does the Expectation of a Major Crypto Event Affect the Basis?

How Does a Sudden News Event Typically Affect the Implied Volatility of a Derivative?

How Can a Trader Hedge against a Drop in Implied Volatility?

Why Does IV Often Decrease Immediately after an Earnings Report?

How Does a Significant Market Event, like a Regulatory Announcement, Impact the Implied Volatility of Crypto Options?

How Does a Sudden, Unexpected News Event Typically Impact the Implied Volatility of a Crypto Option?