Definition

In finance, the Greek letter measuring how much an option's price will swing when market volatility does its thing—basically, it's sensitivity to how much everyone is collectively freaking out. The higher the vega, the more your option's value rides the uncertainty rollercoaster. Named after Las Vegas (sort of), because options trading is basically sanctioned gambling with more math.

Example Usage

The trader focused on high vega options to capitalize on the expected volatility spike before the earnings announcement.

Source: Options trading terminology via dictionary definition

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See “vegas” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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