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OHC Trade Room · Reference

OHC glossary

Every term used across the OHC Trade Room courses, defined the way we teach it. No external definitions are substituted.

terms
553
categories
10
source modules
12

553 terms A–Z

Derivatives & Options Intermediate

Vega

Also known as V

How much an option's extrinsic value changes for a one-point move in implied volatility. A vega of 0.25 means a 1% IV rise adds 25 cents. Long options are vega positive and benefit from rising volatility; short options are vega negative. Vega is highest for long-dated at-the-money options.

Taught in
Module 5 — Derivatives 101 →
Level
Intermediate — builds on core concepts