Options Greeks - Vega (v)

Vega (c) is the third options greek to be discussed in my series of articles explaining the options greeks. Vega is an important options greek for options strategies that are sensitive to volatility (e.g. straddles), but vega is not used as often as delta or theta. My explanation of vega will explain what vega represents, and how vega is used to determine how an options or warrants contract will react to changes in its underlying market's volatility.