Option Vega Explained: Options Volatility From Beginner to Pro

In this comprehensive video, "Option Vega Explained: Options Volatility From Beginner to Pro," we dive deep into the concept of Vega, a crucial option greek that measures an option's sensitivity to changes in implied volatility. Discover how volatility impacts option pricing, extrinsic value, and learn the difference between implied and historical volatility. Explore real-world examples of how Vega affects option prices, its relationship with days to expiration, and gain insights into Vega's behavior at different strike prices. By the end of this video, you'll have a solid understanding of Vega and how to effectively apply this knowledge to your options trading strategies.
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Chapters:
0:00 - Intro to Option Vega Explained
0:29 - Volatility in Option Pricing
2:20 - Option Extrinsic Value
2:55 - Vega: Definition and Importance
3:26 - Implied Volatility Vs Historical Volatility
4:23 - Vega & Changes in Option Prices
5:09 - Implied Volatility & Stock Price Changes
6:25 - Extrinsic Value & Vega Example
7:36 - Vega & Days to Expiration Relationship
9:15 - Monte Carlo Simulation of Option Prices
10:57 - Option Vega At Different Strike Prices
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

[@RyanOConnellCFA]

🎓 Tutor With Me: 1-On-1 Video Call Sessions Available ► Join me for personalized finance tutoring tailored to your goals: ryanoconnellfinance.com/finance-tutoring/

[@breadb4meat]

hey man keep up the videos theyre going to have so much long term value. You're a pretty normal looking guy and can express things very clearly. Hope too see more vids from you. Proud of you

[@RyanOConnellCFA]

Thank you so much for that! I appreciate the positive feedback and the support. And to your point, I'm always trying to make videos that will be relevant 5 years from now!

[@analuizalagespaschoaleto6398]

i just LOVE your videos!!! keep going please. you explain everything sooo well

[@RyanOConnellCFA]

Thank you so much, I have no plan on stopping!

[@victoricus1]

so, in terms of pricing vega is used akin to bootstrapping method for bond pricing? you just derive prices from intrinsic characteristics, so to speak?

[@amirrezaax22]

thats great thanks a ton!

[@RyanOConnellCFA]

My pleasure Amir!