How to Read the Earnings Calendar and IV Crush

Yuka Finance Guide — implied move and implied volatility

Four times a year, companies release quarterly results — events that trigger disproportionate moves, with a specific mechanic in the options market.

Implied Move

Ahead of each release, options prices in an expected move magnitude — the implied move. A large implied move reflects high anticipated uncertainty.

IV Crush

Once results are out and uncertainty resolved, the volatility premium collapses — IV crush. An option bought right before earnings can lose value even if price moves the right way, with the volatility drop offsetting the gain.

Concrete example: a company with an 8% implied move whose stock opens up 4% after beating expectations — a positive reaction, but smaller than the implied move, generally resulting in a sharp IV crush.

Results vs. Implied Move

Traders compare the actual move to the implied move priced in beforehand. A move meaningfully larger than implied reflects a significant surprise relative to expectations.

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