Jul. 21 at 11:48 AM
quick one on why
$CALX could beat on EPS and still bleed 14%. option buyers into a print are paying up for the unknown. the second the release hits, the unknown is gone and implied vol collapses. that is IV crush. it is why you can be dead right on direction and still watch a call lose value. you were long uncertainty and the event deleted it. the beat was real, the guide was soft, the premium bled either way.