➥ Hypergrowth Options Strategy Course:
Option vega represents an option’s sensitivity to changes in implied volatility, which is also called “vega risk” or “volatility risk.”
As an option buyer or seller, you need to understand how an option’s price is expected to change relative to implied volatility. One of the option Greeks, vega, tells us how an option’s price is expected to change relative to 1% changes in implied volatility.
In this video, you’ll learn:
1. What an option’s vega represents
2. Which options have the most exposure to implied volatility changes
3. Short-term vs. long-term vega
4. At-the-money vega vs. in-the-money and out-of-the-money vega
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