From Theory To Practice

Monday - Friday | 1:00 - 1:20p CT

Vega Neutrality

From Theory To Practice

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

We know that delta neutrality is a desirable outcome, as that would indicate our portfolios have no directional bias. Theta neutrality, however, is a lot less desirable because that would mean all of our positive theta as premium sellers would be foregone. So, what about vega? Is “vega neutrality” desirable like delta or undesirable like theta? We invite Mike, from Everyday Trader, onto the set to help us put it in the right ‘bucket’.

From Theory To Practice More installments

See All »

Latest tastytrade Videos As of July 18

Most Shared From the last 30 days