As premium sellers, we are almost always short vega. This means that we want volatility to contract, so that option prices will drop, and we will benefit. From time to time, however, we might end up with long vega positions. Interestingly enough, as we see with our NFLX position, we also might be long vega on trade entry, but short vega at a later date in the trade’s life. Today, we explain why that is the case.References:
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