Alibaba will report its earnings on May 4th. Usually the front month option should have higher IV than the back month, i.e. May05 & May12 should have higher IV than May19. I tried to find any special events that will occur before May19 but could not find anything. What am I missing here? Can we expect the IV crush for the May19 options after earnings? If yes, then reverse ATM calendar just prior to earning date could be a good play.
https://finance.yahoo.com/news/alibaba-group-announce-march-quarter-090000307.html Alibaba Group Will Announce March Quarter 2017 and Full Fiscal Year 2017 Results on May 18, 2017