OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Vega'

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What is Vega in Options Trading ?

Vega is one of the Options Greeks.  It quantifies the predicted change in the option contracts value in response to a 1% increase in the underlying asset's implied volatility.  

How to Use in Your Brutus Options Ranker Strategy

Vega is an important consideration in any successful options trading strategy.  It describes the volatility risk or opportunity in a trade.

You can add Vega to a Net-Short Setup with a target to minimize vega.

In Net-Long Options Setups you will usually look to maximize vega.


Where to find Vega in the Brutus Options Ranker Criteria Panel

Vega can be found on the Strategy Tree Builder page within the Brutus Options Ranker under the Criteria List and the Greek Panel

Video on Vega

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