Options Glossary
Vanna
Vanna is the rate of change of an option’s Delta with respect to a 1% move up or down in its Implied Volatility level. Vanna is a second-order Greek. See also Implied-Volatility
Vega
A measure of the rate of change in an option's theoretical value for a one-unit change in the volatility assumption. See also Kappa and Delta.
Vera
Vera is the rate of change of an option’s Rho with respect to its Implied Volatility level. Vera is a second-order Greek. See also Rho and Implied-Volatility
Vertical spread
Most commonly used to describe the purchase of one option and writing of another where both are of the same type and of same expiration month, but have different strike prices. Example: buying 1 XYZ May 60 call and writing 1 XYZ May 65 call. See also Bull (or bullish) spread and Bear (or bearish) spread.
Veta
Veta, or Vega decay, is the rate of change of an option’s Vega with respect to the passage of time. Veta is a second-order Greek.
Volatility
A measure of stock price fluctuation. Mathematically, volatility is the annualized standard deviation of a stock's daily price changes. See also Historic volatility, Individual volatility and Implied volatility
Vonna
Vomma – Vomma, otherwise known as Vega convexity, is the rate of change of an option’s Vega with respect to its Implied Volatility level. Vomma is a second-order Greek. See also Implied-Volatility






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