system
A chat on subreddit /r/wallstreetbets
human
What exactly is IV crush? I held some calls that didn't print despite the stock going up and I'm wondering if it was the same thing.
gpt
Long story short is IV crush = "you bought the option for too much". You bought it when it was priced based on relatively longer term movement, and now that it's close to expiry even tho the price went in that direction, it didn't go in that direction far enough and now there's not time or reason for it to reach that price. When you buy an option, make sure you are aware of how ITM it has to be to break even on the money you paid for it.