My Favorite Way to Pick Your Days to Expiration (Vega Decay, Explained) | From Theory to Practice


Summary

The video provides a detailed explanation of decay in options trading, specifically focusing on Theta Decay and the various Greeks that influence decay. It delves into how Vega affects options pricing, discussing Vega decay and changes in Vega over time. Using examples from a trading portfolio, the video illustrates how Vega changes in different expiration cycles, shedding light on the impact of zero DTE options on Vega sensitivity and volatility exposure in trading strategies.


Introduction to Decay and Greeks

Explanation of decay in options trading, focusing on Theta Decay and the various Greeks that can impact decay.

Understanding Vega in Options Trading

Discussion on how Vega impacts options pricing, with a focus on Vega decay and changes in Vega over time.

Example of Vega Changes in Different Expiration Cycles

Illustration of how Vega changes in different expiration cycles using examples from a trading portfolio.

Zero DTE Options and Vega Sensitivity

Exploration of the impact of zero DTE options on Vega sensitivity and volatility exposure in trading strategies.

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