What is the meaning of Vega?

Vega is the measure of change in an option given a change in the volatility. Theoretically, it measures the instantaneous change in premium to the instantaneous change in volatility. In practice, it tends to be viewed as the change in premium given a 1 percent in volatility.

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APABarry Goldsmith. (2010). vega. Retrieved September 24, 2026, from http://smartdefine.org/vega/definitions/1166217
ChicagoBarry Goldsmith. 2010. "vega" http://smartdefine.org/vega/definitions/1166217 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, vega, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/vega/definitions/1166217>.
MLABarry Goldsmith. "vega" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/vega/definitions/1166217>
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