IV Crush Visualizer
Why buying options into FOMC bleeds you
Option prices carry an event premium before FOMC. The instant the decision drops, implied volatility collapses — so the option can LOSE value even if price moves your way. Set the terms:
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Before 2:00
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After decision
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change in the option's value
Illustrative ATM-option model (value scales roughly with IV, adjusted for the actual move). The lesson holds: a big move can still lose if the IV crush is bigger.