Posted By John W. B. Rich Posted On

NIO Option Traders Still Don’t Know What IV Crush Is

NIO call option traders were apparently unaware of the concept of IV crush heading into NIO earnings Tuesday afternoon. We profiled a few of these traders yesterday who were scrambling to figure out why their 200% IV calls would likely be crushed after earnings.

One of these traders, Joshua, was back again last night to calculate the exact loss he could expect on a $57 weekly call option. By the way, NIO opened today at $45.80, so there is almost zero chance that Joshua’s call option will be worth anything by the end of the week.

As of 1pm eastern, the $57 NIO call expiring Friday was trading at just $0.22, meaning Joshua is down 81% from yesterday’s close.

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