Greeks

Vega

Sensitivity to IV changes

What is Vega?

Vega Measures how much an option's price changes for a 1% change in implied volatility. Long options have positive vega; short options have negative vega.

Complete Definition

Measures how much an option's price changes for a 1% change in implied volatility. Long options have positive vega; short options have negative vega.

Example

Vega of 0.10 means option gains $10 per contract for every 1% increase in IV.

Related Terms

Implied Volatility Greeks Volatility Trading

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