# Why Does IV Often Decrease Immediately after an Earnings Report? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

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## Why Does IV Often Decrease Immediately after an Earnings Report?

IV decreases after an earnings report because the major uncertainty regarding the company's future performance has been resolved. The market has less to speculate on, leading to a reduction in the expected future price fluctuation.

This is a common example of volatility crush.

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## Glossar

### [IV Decrease](https://learn.greeks.live/area/iv-decrease/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Volatility ⎊ IV decrease, or a reduction in implied volatility, signifies a decline in market expectations for future price fluctuations of the underlying asset.

### [Earnings Report](https://learn.greeks.live/area/earnings-report/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Disclosure ⎊ Earnings reports within cryptocurrency, options trading, and financial derivatives represent periodic public releases of financial performance data by entities operating within these markets, often encompassing exchanges, protocol developers, or investment funds.

## Discover More

### [What Is the Purpose of a 'Vesting Schedule' in Preventing Mass un-HODLing after a Token Launch?](https://learn.greeks.live/path/what-is-the-purpose-of-a-vesting-schedule-in-preventing-mass-un-hodling-after-a-token-launch/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Purpose of a 'Vesting Schedule' in Preventing Mass un-HODLing after a Token Launch?](https://learn.greeks.live/wp-content/uploads/2025/10/Teal-Segmented-Mechanism-Illuminated-Against-Stark-Black-Background-Representing-Token-Vesting-Schedule-Breach.webp)

It locks tokens and releases them gradually over time to prevent a sudden market dump by insiders.

### [What Is the Role of a Suspicious Activity Report (SAR) in the Regulatory Framework for Crypto?](https://learn.greeks.live/path/what-is-the-role-of-a-suspicious-activity-report-sar-in-the-regulatory-framework-for-crypto/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Role of a Suspicious Activity Report (SAR) in the Regulatory Framework for Crypto?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Autonomous-Organization-Governance-Sphere-Observing-Transparent-Cryogenic-Liquid-Swaps-in-Yield-Farming-Protocols.webp)

SARs are mandatory reports filed by VASPs to FIUs, serving as an early warning system and providing intelligence for financial crime investigations.

### [Who Executes the Liquidation Process after a Smart Contract Margin Call?](https://learn.greeks.live/path/who-executes-the-liquidation-process-after-a-smart-contract-margin-call/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Who Executes the Liquidation Process after a Smart Contract Margin Call?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Autonomous-Organization-Governance-Sphere-Unfolding-Revealing-Quantum-Digital-Asset-Settlement-Mechanisms.webp)

External automated bots or 'keepers' execute the liquidation transaction, incentivized by a fee from the liquidated collateral.

### [Why Do Option Premiums Often Decrease Immediately after a Known Market Event?](https://learn.greeks.live/path/why-do-option-premiums-often-decrease-immediately-after-a-known-market-event/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Why Do Option Premiums Often Decrease Immediately after a Known Market Event?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Clockwork-Mechanism-Metaphor-for-Decentralized-Finance-Volatility-and-Perpetual-Swaps-Execution.webp)

The uncertainty is resolved, causing implied volatility (IV) to collapse (crush), which erodes the option's extrinsic value.

### [What Are the Typical Remediation Steps after a Failed SOC 2 Audit?](https://learn.greeks.live/path/what-are-the-typical-remediation-steps-after-a-failed-soc-2-audit/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Are the Typical Remediation Steps after a Failed SOC 2 Audit?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Slipstream-Protocol-Interfacing-Micro-Gap-in-Algorithmic-Execution-Framework.webp)

Remediation involves gap analysis, implementing new controls/policies, staff training, and a re-audit to prove operating effectiveness.

### [What Are a Trader's Two Main Options after Receiving a Margin Call?](https://learn.greeks.live/path/what-are-a-traders-two-main-options-after-receiving-a-margin-call/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Are a Trader's Two Main Options after Receiving a Margin Call?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Kinetic-Sculpture-Representing-Decentralized-Finance-Option-Hedging-Mechanisms.webp)

Deposit additional funds to restore the margin balance, or close the open position to reduce the margin requirement.

### [How Does the Concept of "Recency Bias" Affect Decisions after a Margin Call?](https://learn.greeks.live/path/how-does-the-concept-of-recency-bias-affect-decisions-after-a-margin-call/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Concept of "Recency Bias" Affect Decisions after a Margin Call?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Quantized-Settlement-Layer-Edge-Case-Interaction-in-Decentralized-Finance-Protocols.webp)

Overweighting the recent sharp price drop, leading to irrational panic selling or over-leveraged doubling down.

### [Does the Team's Holding Percentage Matter after Vesting?](https://learn.greeks.live/path/does-the-teams-holding-percentage-matter-after-vesting/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does the Team's Holding Percentage Matter after Vesting?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Visualization-of-Crystalline-Volatility-Orb-on-Asymmetric-Digital-Ledger-Architecture.webp)

Yes, a large residual team holding percentage after vesting indicates continued financial commitment and incentive alignment with the project's success.

### [Does High Volatility Typically Increase or Decrease the Option's Premium?](https://learn.greeks.live/path/does-high-volatility-typically-increase-or-decrease-the-options-premium/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does High Volatility Typically Increase or Decrease the Option's Premium?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetrical-Geometric-Assemblage-Illustrating-Exotic-Option-Payoff-Structures-Under-High-Volatility.webp)

High volatility increases the option premium because it raises the probability of the option expiring In-The-Money.

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