calendar spread

How to Take Advantage of Vega (IV) in the Calendar Spread

As we have already explained earlier that Vega is about changes in implied volatility (IV). It is the rate of change of an option’s price on every 1% change in IV. As a result, as implied volatility increases, the option prices increases and Vega goes up if everything remains up: interest rate and DTE. Impact of Time Value or Theta on Vega The vega for an option having more number of days ...

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