Options trading part 5: Vega/Volatility risk

Romano RNR
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…

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Romano RNR

Derivatives trading, investing, cryptocurrency, stocks, forex, options & volatility - programmer & sysadmin