This is the Option Chart for TSLA JUNE 18 2021 $1050 CALL. It was bought for $47.50 per option. The underlying price was $645 when it was bought. Now after 8 days, the option value is $33.25. The underlying price of the stock is the same as 8 days ago which is $645.
I don't understand why the Implied Volatility has gone down so much which might have happened here. Is the volume low or PUT options for the same expiration are increasing causing this drop?
What should happen for the IV to go high? There is no guarantee that the price of the option to go higher even if the stock price reaches $800 or $1000.
Any help to understand what is happening here is appreciated.
UPDATE on 12/21: After TSLA has been added to S&P today, the IV dropped to 65%. The 51% is what the trading platform showed during the 5 minutes before on last Friday.
Some of my reading show that it is incorrect to assign that when the price goes up, the IV will go higher. As an example, when the crash happened in March this year, the SPY IV went up. TSLA is known for IV crash after a major event when the Price and IV goes up. Then IV drops significantly.