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How Does Vega Change as an Option Approaches Its Expiration Date?

Vega, which measures an option's sensitivity to changes in implied volatility, decreases as the option approaches its expiration date. This is because there is less time for the underlying asset's price to experience a large move.

Therefore, a change in volatility has a smaller impact on the option's value when it is near expiration.

Explain Why Theta Accelerates near the Option’s Expiration Date
What Happens to the Time Value of an OTM Option as Expiration Approaches?
How Does the Time to Expiration Affect the Value of Vega for an Option?
How Does the Time Decay (‘theta’) Affect the Value of an Option’s Premium?