Option Greek Vega
Vega represents the amount by which an Option price will increase or decrease for a 1% change in the Implied Volatility of the stock.
ABOUT THIS COURSE
Vega is somewhat of an intangible, hidden Greek, which makes its impact incredibly powerful, with large effects on Option prices. Implied Volatility is a Wild Card because of this, and it would serve every Options trader very well to always have one eye on Vega
- Vega is a Wildcard - Vega denotes the impact of changes in Implied Volatility and how it affects Option prices, and is a Wildcard because Implied Volatility itself is a Wildcard
- Buyer Seller Perspectives - Implied Volatility and Vega works very differently for Buyers and Sellers of Options. Option prices can change dramatically with changes in Implied Volatility
- Live Demonstration - Vega values differ for Expiry series, Strike prices of the Options, and all of this is demonstrated Live on the trading platform
- Vega and Moneyness - Vega works differently depending upon the Moneyness of the Option. At the Money Options have the maximum values for Vega
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