Vega
Investment Dictionary:
Vega
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Definition
Vega
Coefficient measuring the sensitivity of an option value to a change in volatility.
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4. Vega or Tau ratio
This ratio measures the change in the value of a futures contract as affected by volatility of the underlying. Its value is greatest when the contract is in the money, and decreases as it becomes out of the money.
Vega: Exposure to Volatility
Vega is the term for an option premium's exposure to a one percentage point change in implied volatility.
Vega and Rho
Vega and Rho are two measures among the family of option Greeks. Vega is a measure of an options change in price relative to a 1% change in volatility. Rho is the rate of change of an options price relative to change in interest rate.
Vega
The measure of change to the value of an option in relation to a change in the volatility.
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Vega. The sensitivity of the theoretical value of an option to a change in volatility.
Velocity of money. The rate at which money is turning over on an annual basis to facilitate income transactions.
Vega - is a measure of an option's sensitivity to changes in the volatility of the underlying asset.
Delta, always difficult to explain ...
Vega: Coefficient measuring the sensitivity of an option value to a change in volatility.
Vega
The amount that the price of an option changes compared to a 1% change in volatility.
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Vega - Expresses the price change of an option for a one per cent change in the implied volatility.
Vega
A measure of the rate of change in an option's theoretical value for a one-unit change in the volatility assumption.
Vega
The amount by which the price of an option changes when the volatility changes.
Vega - The responsiveness of the value of an option to changes in the volatility of the underlying financial instrument.
Volatility - Upwards and downwards movement in the price of a financial instrument.
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VEGA Measure of change in volatility in the gold price and its implications for an existing option exposure.
VOLATILITY The rate of change in the price of the underlying commodity.
Vega: Greek term for the amount by which the price of an option changes when the volatility changes. Also referred to as the volatility.
Vega
A measure used to describe the change in value of the Option when the volatility of the underlying asset changes.
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Option Vega
The option Vega is an option Greek that can be used to determine how much an option will change for every 1 percentage point change in volatility.
Vega
The sensitivity of an option price to volatility. Typically, options increase in value during periods of high volatility.Vega is the measurement of the sensitivity of ...
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Vega
The sensitivity of an options value to a change in volatility. Also known as Kappa. The first derivative of option worth with respect to volatility.
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Vega shows the change in the option price due to an assumed 1% increase in the underlying security's volatility. Vega shows the dollar amount of gain that should be expected if the volatility goes up one point (all else being equal).
Vega
A term that describes the sensitivity of the option price to a one-percent change in volatility.
v Vega The Greek letter representing the change in an option's theoretical value given a 1% change in the volatility of the underlying. Versus Cash See Exchange for Physicals.
Joseph de la Vega, also known as Joseph Penso de la Vega and by other variations of his name, was an Amsterdam trader from a Spanish Jewish family and a prolific writer as well as a successful businessman in 17th-century Amsterdam.
Vega: A measure of how much an option changes value relative to a point change in the volatility of the underlying.
Volatility has two components - Historical Volatility (measured by a Greek symbol called VEGA) and Implied Volatility (measured by a Greek symbol called ZETA).
Interest rates. This factor does not need to interest option traders.
Kappa: Another name for vega.
Limit move: A price that has advanced or declined by the maximum amount permitted during one trading session, as fixed by the rules of a contract market.
vanna The sensitivity of vega (also known as kappa) to a change in the underlying price.
com vega The change in the price of an option that corresponds to a one percent change in volatility. velocity The number of times a currency changes hands in a specific period of time....
Vega
Vega is the sensitivity of an options price to a change in volatility. An option with a vega of 0.25 would gain 25 cents for each percentage point increase in volatility.
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The "Iron Condor" is a negative Vega option spread, meaning that it benefits when the IV on the underlying traded is going down. This usually happens if the underlying price is rising. Right now the market is somewhat bullish.
Options traders often refer to "the greeks", especially Delta, Vega, and Theta. These are mathematical characteristics of the Black-Scholes model named after the greek letters used to represent them in equations.
On the other hand, dealers revise their quotes in order to reflect their reaction to public news announcements (Andersen, Bollerslev, Diebold, and Vega, 2002) or their detention of private information coming from their customers’ ...
An option's dollar sensitivity to movements in implied volatility is known as vega. Obviously, an at-the-money option will have a higher vega (volatility sensitivity) then will an in-the-money or out-of-the-money option in the same month.
- Toshiba Folio 100, Viewsonic G, Asus Eee Tablet, Notion Ink (could be huge), Acer tablet, ICD gemini and vega, Samsung galaxy tab 2(!!), Compal tablet, MSI tablet, Quanta tablet, Foxconn tablet, Matala SMBA, Advent Vega, Mobii, eLocity, ...
The change in the price of an option associated with a 1% change in implied volatility (technically the first derivative of the option price with respect to volatility). Also referred to as eta, vega, omega and kappa.
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The theta describes the time decay of an option. The vega describes the effect of changes in the implied volatility on the value of the option. Rho is the option's sensitivity to changes in interest rates.
Put-Call Parity
Theoretical Pricing Models: Binomial Option Pricing And The Black-Scholes Formula
The Greeks: Delta, Gamma, Theta, Vega, and Rho
Employee Stock Options; Back-dated Options
Exotic Options ...
 See also: Option, Options, Market, Volatility, Trading
  
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