Glossary

Vega (ν)

By Rohan Fernandes, Founder · Updated 2026-08-21 · Educational reference, not investment advice

Vega is the option's price change for a one-percentage-point change in implied volatility. Debit structures and straddles are long vega; credit spreads and condors are short vega, gaining when volatility falls or stays overpriced.

Vega is largest for at-the-money strikes and longer expirations, which is why LEAPS are volatility positions whether the holder intends it or not. Short-vega structures are screened for rich premium at entry because their edge is the volatility they sell; a portfolio-level vega cap bounds how much of the book one volatility shock can hit at once.

Educational reference. Options Scanner is a software tool. It is not a broker-dealer, an investment adviser, or a fiduciary, and nothing on this page is investment advice or a recommendation to buy or sell any security. Options involve risk and are not suitable for every investor; read the Characteristics and Risks of Standardized Options before trading. Examples use hypothetical numbers for illustration only.