Vega option

Vega is one of the options Greeks—a measure of how much an option's premium changes for a one percentage point change in the implied volatility of the underlying asset, all else being equal. A Vega of 0.10 means that if implied volatility rises by 1%, the option's price increases by ₹0.10. Both call and put options have positive Vega—they become more expensive as volatility rises. Options buyers benefit from rising volatility (long Vega), while options sellers benefit from falling volatility (short Vega). Understanding Vega is essential for traders deploying volatility-based strategies in Nifty and stock options, particularly around events like earnings announcements and RBI policy meetings that cause sharp volatility spikes.