Lesson

Vega sensitivity | Options Educator

Track IV shifts and plan trades around volatility expansions and crushes.

What you'll practice

• After "Volatility up 5 points", whose price changes by more: the longer-dated call (option A) or the weekly call (option B)?
• Shorten the longer-dated call (option A) toward a month to expiry, until its vega per point is about $0.120, within $0.005.

In this lesson

Vega: Volatility Sensitivity

• Vega tracks sensitivity to IV changes
• Longer-dated options carry more vega
• ATM options react the most to IV shifts

Managing Vega Risk

• Vega rises with longer expirations
• IV crush can wipe out gains
• Spreads help manage vega risk
• Catalysts often drive IV spikes

Explore

• Learn workspace — your current module and lesson
• Lesson catalog — every structured lesson
• Learning journey — the structured curriculum
• Roadmap — the full learning path
• Simulator — guided practice tied to lessons
• AI assistant — ask a question, get the concept
• Career mode — gamified progression and the open-world trading city