Research Specials LIVE

Vega Over Time

Research Specials LIVE

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

In today's segment Beef and Anton discuss the greek Vega which describes an option's volatility. Although it may seem esoteric it is in fact a very usable and understandable metric. As the guys show in this segment Vega can actually be broken down into dollars and cents for the bottom line P&L.

Various strategies display greater sensitivity to a change in Vega. Straddles, for example, see a larger change in P&L given a change in vega than that of a strangle.

Most interesting of all is the fact that this investigation into Vega further provides evidence of a timeframe with 45 DTE with an exit point of 21DTE, make a lot of logical sense.

If you want to get more comfortable understanding greek life, check out today's segment!

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