system
A chat on subreddit /r/wallstreetbets
human
IV isn't high because of the drop.  IV is high because of the binary event of earnings release.

gpt
Not exactly. Yes, earnings increase IV but this particular earnings release has higher IV than usual due to the massive move from the last earnings release. Option sellers want a hell of a lot more premium for the risk they are taking on, considering what happened last time. Hence, sellers are pricing in another big move.