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What Is “Volatility Crush” in Options Trading?

A rapid drop in implied volatility after a major anticipated event.
Greeks.Live22.11.25

What Is “Volatility Crush” in Options Trading?

Volatility crush is the rapid decrease in implied volatility (IV) following a major, anticipated event, such as a cryptocurrency halving or regulatory decision. Since IV is a major component of time value, the crush causes a sharp drop in option premiums, which is detrimental to option buyers.

What Is a “Volatility Crush” and How Can It Impact an Options Trade?
What Is “IV Crush” and When Does It Typically Occur in Crypto Options Trading?
How Quickly Can Implied Volatility Typically Drop after a Major Event Has Passed?
How Does a “Volatility Crush” Impact the Profitability of Options Market Makers?

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