Vega K (also known as Kappa or Lambda)
The type of option (call or put)
The price of the underlying asset
The exercise price (or strike price) of the option
The expiration date
Volatility—Implied and Historical
Risk-free interest rate
Dividends and stock splits.
Vega starts with a V and stands for Volatility.
When you trade stocks, you must be aware of volatility. Volatility is a measure of how a security’s price is moving. Volatility is recognized as a measure of risk. If a stock price fluctuates all over the place in wild swings, then you’d find it uncomfortable because you wouldn’t have a clue what it was going to do next, ...