The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be answering the question, “Does option volatility (specifically Vega) change with time?” And of course, volatility and option volatility which is commonly referred to as a Greek letter Vega, does change with additional time until expiration for those contracts. Now, this concept makes complete sense when you think about it in the context of a flight or a plane that’s traveling either a short distance or a long distance before it arrives at its destination. For example, if a plane takes off from New York, then a very small and slight tweak in the direction of where the plane is going right after takeoff can have a dramatic impact on where the plane actually ends up. The plane takes off from New York and it’s facing Los Angeles and California, but then right after takeoff, it makes just even the slightest degree change in trajectory and that could end up leading the plane all the way to California