### Comment:
IV isn't high because of the drop.  IV is high because of the binary event of earnings release.

### REPLY:
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.

### END.