After Amazon's earnings report (before May 24, 2024), implied volatility (IV) for AMZN options will experience an 'IV crush,' causing the value of a $165 put option sold for $425 (expiring May 24, 2024) to rapidly decrease to $100-$200.
"after earnings what typically happens is there's an event that is called an IV crush this means that imply volatility is super high and then all of a sudden it will shrink down very very low and this means that a lot of these option contracts will also shrink down very very fast so when you sell this option contract for $425 or whenever or when I sell this and after earnings if the stock doesn't really go anywhere and IV shrinks down right people aren't betting on Amazon anymore this $425 will shrink down very very fast it will probably shrink down to maybe $200 or $100 or whatever it is"