Option Greeks
Vega
Definition
What is Vega?
The sensitivity of an option's price to a change in implied volatility.
Example in practice
How This Looks in Practice
A long option generally gains when implied volatility rises.
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Related Terms
Option Greeks
Delta
The estimated change in an option's price for a small change in the underlying price.
Option GreeksGamma
The rate at which an option's delta changes as the underlying price changes.
Option GreeksTheta
The estimated loss in an option's value from the passage of time, all else equal.
Real Estate InvestingReal Estate
Land and buildings held for use, rental income, development, or appreciation.