Options Glossary

Glossary: Vega

Last Updated: August 27, 2016



What Does Vega Mean in Options Trading?

Vega is one of the Options Greeks.  It quantifies the predicted change in the option contracts value in response to a 1% increase in the underlying asset's implied volatility.

How to Use In the Brutus Options Ranker

Vega is an important consideration in any successful options trading strategy.  It describes the volatility risk or opportunity in a trade.
You can add Vega to a Net-Short Setup with a target to minimize vega.
In Net-Long Options Setups you will usually look to maximize vega.

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