Sports Markets

Darren Rovell joins Tom Sosnoff for a virtual fireside chat on sports betting & trading.

Watch Now

Trade Logic Unlocked

Why is Vega the Highest for ATM Options?

Trade Logic Unlocked

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

Of the Greeks, Delta and Theta are without question the two that we spend the most time analyzing and examining. Still, the less popular Greeks, such as Vega, are important in nontrivial ways. And one interesting phenomenon of Vega is that its value is always highest for ATM options. In today’s Trade Logic Unlocked, we take an intuitive approach to explaining why that is the case, and not surprisingly, it all traces back to the moneyness of the option.

Trade Logic Unlocked More installments

See All »

Latest tastytrade Videos As of August 10

Most Shared From the last 30 days