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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AU Small Finance Bank

Understanding Options Greeks: Delta, Theta, Gamma, and Vega

When you talk about Options trading, there is always a good probability that the discussion will shift to delta, gamma, vega, and theta, known as "Greeks,". They offer insights about how to measure the sensitivity of an option's price to various factors. Take, for instance, the delta measures the sensitivity of an option's premium corresponding to a change in the price of the underlying asset.  Theta tells about how the price will change ...

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