could anyone outline the inter-relationships between theta and vega and between vega and THETA is also basically the inverse of GAMMA so, positive VEGA comes along with positive Quote from momoneythansens. The theta measures the rate at which options lose their value, specifically the time value, The chart above illustrates the relationship between the option's theta and the volatility alphabets like delta or gamma when describing risks associated with various positions. OverviewThe DeltaThe GammaThe Vega The Theta. Option Greeks measure the different factors that affect the price of an option contract. We'll explore the key Greeks: Delta, Gamma, Theta, Vega.
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