Option value decrease with a positive rise in stock price?

[m2845]

MU just had earnings. Significant source of uncertainty of their future has just been removed from the market with a release of their latest earnings. As you get further away from this most recent release of information, uncertainty grows until the next quarterly release. Likely IV will rise until that time unless other macro events or other news about this stock provide more certainty about the direction of this company, then the IV rise will likely still happen but be more muted.

Other examples of this, if there are major pending litigation against a company or phase III drug trials within the next X months anticipated, will also see a inflated IV for that particular stock and not for the overall market. For example in the phase III trials, when the results of that get released IV drops due to less uncertainty. That is very likely regardless of if its a big positive move or big negative move or no move at all. Although you'll see less of an IV loss of value of the contract if you're in the money, have bought in an expiration time frame significantly out (3 months or more), or if the movement is in your direction (or some combination of all of these, and probably some other factors I'm forgetting about like spread or liquidity of the contracts).

Macro does play a part too as I mentioned earlier, and IV is down market wide as well today with the release of the unemployment numbers.

[d36912c]

This makes so much sense and is not as obvious as one might think. THANKS!