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Glossary · Options

Vega

How much an option’s price changes when implied volatility moves 1 point.

Why it matters

You can be right about direction and still lose if volatility collapses, for example after earnings. Vega measures that risk.

How to read it

Long options gain when IV rises; short options gain when it falls.

Related

Implied volatilityThe yearly volatility that today’s option prices imply. Higher IV means pricier options.Volatility crushThe sharp drop in implied volatility right after an event like earnings.

In the Cluenex app, this explanation opens next to every vega figure, with the live reading for the stock you are looking at. Open it in Cluenex