Easy answer. Ever been to the hospital and the administer an IV? Same thing. You were depleted in one way or another, so they give you the IV to bring you back up.
When they take the IV out, you’re back to where you’re supposed to be. But that ride up, to get you to where you’re supposed to be, it doesn’t really exist. It raises your chances of curing, but when they take it out, you’re back to where you started.
IV is speed. Use it like that. Every ticker has a different IV. If the IV for AMD averages 48% and you see it at 65% and buy options, you’re toast.
To use IV at an advantage, sell within the first hour of trading. If you’re long options, don’t buy until the IV of your ticker is near average.
This is why IV goes up closer to earnings. The stock market ain’t stupid. Good luck.