6/14/23, 9:15 AM In The Money | Using Vega to navigate vagaries of the market

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OP I N I ON ( H T T P S : / / W W W. M O N E Y C O N T R O L . C O M / N E W S / O P I N I O N / )
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In The Money | Using Vega to WATC

navigate vagaries of the market

Higher the volatility higher is the option premium. Vega is the Greek om/ n ews/ busi n ess/ pr o-
di sc ussi on -

which measures this relationship and it is the change in option Pro Maste
men t s-at -5-
l -2022-wi t h -
61.h t ml )

“Multicap
premium for a unit percentage change in volatility Balance B
Stability”
A N A N Y A R OY Ruchit Meh
( H T T P S : / / W W W. M O N E Y C O N T R O L . C O M / A U T H O R / A N A N Y A - R OY - 1 1 7 3 1 / ) Priyanka Dh
J U N E 1 4 , 2 02 3 / 09 : 05 AM I S T and N
(https://www
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he market&url=https://www.moneycontrol.com/news/opinion/in-the-money-using- In today’s editio

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6/14/23, 9:15 AM In The Money | Using Vega to navigate vagaries of the market
s:/
Hi g/www.moneycontrol.com/news/opinion/in-the-money-using-vega-to-navigate-
h er th e vol a ti l i ty h i g h er i s th e op ti on p rem i u m . Veg a i s th e Greek wh i ch m ea su res th i s rel a ti on sh i p a n d i t i s

ries-of-the-market-10793451.html/amp%0D%0A%0D%0A%0D%0ADownload the
th e ch a n g e i n op ti on p rem i u m f or a u n i t p ercen ta g e ch a n g e i n vol a ti l i ty .

I
eycontrol App for Free and get realtime stock quotes, Indian and Global market indices,
folio ntracker,
recent editions
LIVE TVofand In the Money,coverage
in-depth we have looked at how the option price has multiple
of financial
drivers called the Greeks. /m.moneycontrol.com/mom)
kets.%0D%0A%0D%0Ahttp:/ We have covered three Greeks so far – Delta, Gamma, and
Theta. Delta drives option premium with movements in the underlying spot, while Gamma
drives Delta itself, and Theta drives the time-based erosion of option premium. However, an
option trader can strike the right chord with these three Greeks and still end up with a loss
because there’s a...

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