"Vega" (work)

Vega is a term from options trading that measures how sensitive an option's price is to changes in the underlying asset's volatility. In simple terms, it indicates how much the value of an option might increase or decrease if the market's expectations about future price fluctuations change. A higher Vega means the option's price is more affected by changes in volatility, making it more valuable when market uncertainty rises. Traders use Vega to manage risk and position themselves effectively in options markets, especially during periods of expected increase in market volatility or stability.