Vega Explained – How Volatility Impacts Option Prices (Yiddish)

in lesson is changes and volatility. Volatility is the shock link in the stock can affect the option Einstein. The most misunderstood option Greeks Option trading involve risk [music] options. [music] Please draw the in the comment section. Mangan and the sigia fan versus a measurement. Okay. So basically the implied volatility implied volatility mind. This is the outlook. The market implied volatility expected [music] volatility marked as options. options [music] market. So mention the stock [music] expect of the stock options market positions [music] and demand change was the expectation. options. money options expiration option basically options implied volatility dropped. direction value in the option option chain option chain. This is spy. Spy is the ETF from the S&P 500. And basically what the Z do is as the stock price is yet $645. Okay. So the add the money options 645 for the 646 and the kicks do of the columns is this is the call out the Vega and this is the puts at the Vega of the link is the call and of theat is the puts. Okay. GAD 646 strike price hot 7.258 this m the stock time 100 is a $72% the option $72. This is the call side. Okay. Kick of the side $72 $72 with the IV $72. Let's give a kick of the option chain 15.93. The IV options is% [music] real world examples. form earnings. Amazon report earnings. >> [music] >> reported earnings is the IV dropped the IV direction. So earnings the stock crush. tried a picture needle in the balloon and the gunite concerns me options IV earnings as the IV of the shorter term options option buyers IV option sellers The option buy the option expensive option. [music] lesson invisility can affect the subscribes in the comments any questions markets all The guys.com/blog lessons and email