Lessen 1 on Iron Condor, IV crush

 

5) Positioning unwind = extra IV crush

Into the event:

• Traders buy options (hedging war risk)
• Market makers price in premium

After ceasefire:

• Hedges get closed
• Demand for options drops

👉 IV falls fast (sometimes violently)

This is exactly what traders call:
“vol crush event”

6) Why it feels wrong (but isn’t)

You expected:

War → high IV

But reality:

• Peak IV happens BEFORE resolution
• Lowest IV often happens RIGHT AFTER resolution

Bottom line

Your NVDA IV Rank is ~1 because:

1. War uncertainty was already priced earlier
2. Ceasefire removed tail risk → IV collapsed
3. NVDA isn’t directly sensitive to war
4. IV Rank is relative to past spikes (earnings/AI mania)
5. Positioning unwind accelerated the drop
6. 
   

---Just a reminder