Lesson 13 - Vega: How Volatility Impacts Option Prices (Yiddish)
Dec 15, 2025Volatility can be your best friend or your worst enemy in the options market — depending on whether you understand Vega.
In this lesson, we break down how Vega affects your option prices when implied volatility changes, even if the underlying stock stays flat. This is especially relevant during earnings season or major news events.
We covered:
- What is Vega? The measure of how much an option’s price will change with a 1% move in implied volatility.
- How Vega impacts both buyers and sellers differently.
- Why options lose value after earnings, even if the stock doesn’t move.
- How longer-term options have higher Vega, meaning they react more to volatility changes.
- The importance of aligning your strategy with the volatility environment.
If you’ve ever bought an option and lost money even though the stock moved your way — this lesson will explain why.
🎥 Watch the full video above, and if there’s a specific topic you’d like to see next, drop a comment. I might cover it in an upcoming session.