# Options trading part 5: Vega/Volatility risk

18 min readJun 13, 2022

**Vega**, commonly known as the “**volatility**” of an option contract, is our fourth risk consideration while trading options & delta-hedging.

Vega is the options greek that measures the sensitivity of an option’s price to a change in “implied volatility”.

In the same way, as option contract values are impacted by changes in the underlying price (“delta”) and the…