In this lesson, I explain Vega โ the Greek that measures how much option prices move when volatility changes.
Most people donโt realize that options can lose or gain value even when the stock doesnโt move โ just because implied volatility changes. Thatโs why understanding Vega is critical if you want to stop gambling and start trading responsibly.
Youโll learn:
– What Vega actually means
– Why options can lose value after earnings even when the stock doesnโt move
– How long-term options react differently than short-term ones
– Why option sellers love high volatility
– How to avoid falling into the “volatility trap”
โ Disclaimer: Options trading involves risk. Most traders lose money. Do not trade options if you donโt fully understand what youโre doing.
If you have questions or want me to cover a specific topic, leave it in the comments.
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