IV would clearly drop after earnings if it were higher before earnings. And IV could easily be higher than HV prior to earnings as a lot of options investors were betting on a price jump after earnings release. And stock traders were doing the same as seen by the up and down oscillations in price ahead of earnings -- optimists would be buying the stock then long-term holders would take profits and sell stock (then repeat). So price oscillates up and down.
I think it just says that those who would trade MU options are staying away for awhile, so prices come down to make those options more appealing (and so those traders come back in but get better prices). I’m showing the price/volatility chart at the bottom. The chart won’t show volatility on charts longer than 9-months. As you can see, HV is rarely below IV; and If it does happen, it’s usually a spike in stock volatility that spikes upward (due to news releases, such as earnings, et cetera).
When I sold my earlier Calls for a little over $1 was half-way down on the IV dive that started after earnings release on the previous evening. Too bad I didn't sell them before the market closed on earnings day. I was waiting for an upward spike in price on the following day. Oh well.
Sorry about the two charts not being the same period. What’s a month here or there?
I think, barring any monumental market changes, MU continues to trend higher, but within the lower part of the fork (sort of like it did a couple months ago).
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