Define “Vega” and How It Differs from Theta in Weekly Options.
Vega is the options Greek that measures the sensitivity of the option's price to a 1% change in implied volatility. Theta measures the sensitivity to the passage of time.
In weekly options, Theta is very high due to the proximity of expiration. Vega is generally lower in weekly options compared to long-dated options because there is less time for volatility to affect the final outcome.
Glossar
Weekly Options
Adoption ⎊ The proliferation of Weekly Options reflects an evolution in market structure, offering traders greater granularity in managing short-term risk and speculation.
Term Structure of Volatility
Horizon ⎊ The term structure of volatility, within cryptocurrency derivatives, describes the relationship between implied volatility and option expiration dates.