Implied Volatility (IV) Gapper

This is basically a big change in Implied Volatility [IV]. IV gaps higher when the market expects the underlying Stock/ETF to make a big move in the short term.

IV can gap lower when an important event, like an earnings report, has passed.

The big gap up in the IV can cause the premium of the Options contract to increase significantly and if it gaps lower it can erode the premium very quickly.

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