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choonhong1
2022-04-04

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What is Vega & Rho in options?

@OptionsTutor：

There are 5 Common Greek Letter Indicators for Options: What is Delta in Options? What is Gamma in Options? What is Theta in Options? This post will explain vega & rho in options. Vega reflects the effect of volatility on changes in option prices. For every 1% change in volatility, the option price changes by approximately 1 vega. Rho reflects the impact of the risk-free interest rate on changes in option prices. For every 1% change in the risk-free rate, the option price changes by 1 approximately rho. When introducing the implied volatility, it was mentioned that the implied volatility has a great influence on the option price, and the impact of the implied volatility on the option price can be quantified through vega. Rho is used to measure the impact of the risk-free interest rate on changes in futures prices. Usually, the risk-free interest rate fluctuates less because it has less impact on option prices. Follow me to learn more options trading basics. 📚Recommend reading What is an Option? Ask me! How to Calculate the Gain & Loss of Options What is a Covered Call？Option Strategy Series 1 What are Out of the Money Options & In the Money Options? 📒If you want to know more details about Tiger Paper Account, you can click here to watch【Video version of Guidance for Options Paper Account】

What is Vega & Rho in options?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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For every 1% change in volatility, the option price changes by approximately 1&nbsp;vega.</p> <p>Rho reflects the impact of the risk-free interest rate on changes in option prices. For every 1% change in the risk-free rate, the option price changes by 1&nbsp;approximately rho.</p> <p>When introducing the <a href=\"https://ttm.financial/TW/9099204490\" target=\"_blank\">implied volatility</a>, it was mentioned that the implied volatility has a great influence on the option price, and the impact of the implied volatility on the option price can be quantified through vega.</p> <p>Rho&nbsp;is used to measure the impact of the risk-free interest rate on changes in futures prices. Usually, the risk-free interest rate fluctuates less because it has less impact on option prices.</p> <p>Follow&nbsp;me&nbsp;to&nbsp;learn&nbsp;more&nbsp;options&nbsp;trading&nbsp;basics.</p> <p>📚<b>Recommend reading</b></p> <ul> \n <li><a href=\"https://ttm.financial/TW/9008354509\" target=\"_blank\">What is an Option? Ask me!</a></li> \n <li><a href=\"https://ttm.financial/TW/9002989302\" target=\"_blank\">How to Calculate the Gain &amp; Loss of Options</a></li> \n <li><a href=\"https://ttm.financial/TW/9002850366\" target=\"_blank\">What is a Covered Call？Option Strategy Series 1</a></li> \n <li><a href=\"https://ttm.financial/TW/9004449931\" target=\"_blank\">What are Out of the Money Options &amp; In the Money Options?</a></li> \n</ul> <p>📒If you want to know more details&nbsp;about&nbsp;Tiger&nbsp;Paper&nbsp;Account, you can click here to watch<a href=\"https://www.laohu8.com/college/column/C20211129064437646\" target=\"_blank\">【Video version of Guidance for Options Paper Account】</a></p></body></html>","htmlText":"<html><head></head><body><p>There&nbsp;are&nbsp;5 Common Greek Letter Indicators for Options:</p> <p><a href=\"https://ttm.financial/TW/9090138433\" target=\"_blank\">What is Delta in Options?</a></p> <p><a href=\"https://ttm.financial/TW/9096368977\" target=\"_blank\">What is Gamma in Options?</a></p> <p><a href=\"https://ttm.financial/TW/9033264626\" target=\"_blank\">What is Theta in Options?</a></p> <p>This&nbsp;post&nbsp;will&nbsp;explain&nbsp;vega&nbsp;&amp;&nbsp;rho&nbsp;in&nbsp;options.&nbsp;</p> <p>Vega reflects the effect of volatility on changes in option prices. For every 1% change in volatility, the option price changes by approximately 1&nbsp;vega.</p> <p>Rho reflects the impact of the risk-free interest rate on changes in option prices. For every 1% change in the risk-free rate, the option price changes by 1&nbsp;approximately rho.</p> <p>When introducing the <a href=\"https://ttm.financial/TW/9099204490\" target=\"_blank\">implied volatility</a>, it was mentioned that the implied volatility has a great influence on the option price, and the impact of the implied volatility on the option price can be quantified through vega.</p> <p>Rho&nbsp;is used to measure the impact of the risk-free interest rate on changes in futures prices. 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Ask me!</a></li> \n <li><a href=\"https://ttm.financial/TW/9002989302\" target=\"_blank\">How to Calculate the Gain &amp; Loss of Options</a></li> \n <li><a href=\"https://ttm.financial/TW/9002850366\" target=\"_blank\">What is a Covered Call？Option Strategy Series 1</a></li> \n <li><a href=\"https://ttm.financial/TW/9004449931\" target=\"_blank\">What are Out of the Money Options &amp; In the Money Options?</a></li> \n</ul> <p>📒If you want to know more details&nbsp;about&nbsp;Tiger&nbsp;Paper&nbsp;Account, you can click here to watch<a href=\"https://www.laohu8.com/college/column/C20211129064437646\" target=\"_blank\">【Video version of Guidance for Options Paper Account】</a></p></body></html>","text":"There are 5 Common Greek Letter Indicators for Options: What is Delta in Options? What is Gamma in Options? What is Theta in Options? This post will explain vega & rho in options. Vega reflects the effect of volatility on changes in option prices. 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How to Calculate the Gain & Loss of Options What is a Covered Call？Option Strategy Series 1 What are Out of the Money Options & In the Money Options? 📒If you want to know more details about Tiger Paper Account, you can click here to watch【Video version of Guidance for Options Paper Account】","highlighted":2,"essential":2,"paper":2,"link":"https://ttm.financial/post/9031089969","repostId":0,"isVote":1,"tweetType":1,"commentLimit":10,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"upFlag":false,"length":1087,"xxTargetLangEnum":"ORIG"},"isVote":1,"tweetType":1,"viewCount":338,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"upFlag":false,"length":36,"xxTargetLangEnum":"ORIG"},"commentList":[{"id":104013792,"gmtCreate":1663675742358,"gmtModify":1663675742358,"authorId":4092042073455650,"author":{"id":4092042073455650,"authorId":4092042073455650,"name":"TAILO","avatar":"https://community-static.tradeup.com/news/faab8b3e8bd8cfbb51e26991cf83c311","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9018804193,"type":1,"supId":0,"prevId":0,"content":"<u>l</u>","text":"<u>l</u>","html":"<u>l</u>","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0}],"hasMoreComment":true,"orderType":2}