Why did the ATM call of GPC go from 80.47 IV to 253 IV after earnings.

Discussion in 'Options' started by wartrace, Apr 19, 2024.

  1. wartrace

    wartrace

    I was under the impression that after earnings were announced the IV of an ATM option would crush down. Right before earnings GPC the ATM options had a 80.47 IV; this morning the IV is 253. This is three times what it was right before earnings, earnings were announced on Wednesday and here it is Friday. Is there any logical reason for this or is the market maker just screwing people?
     
  2. 2rosy

    2rosy

    wouldn't the market maker also be screwing himself?
     
  3. wartrace

    wartrace

    My apologies. I am new at trading earnings and ignorant. It appears all options do this on expiration day. Good lesson learned today:banghead:
     
    Last edited: Apr 19, 2024