Term of the Day: Vomma

	View online | Add Investopedia to safe senders list August 22, 2013 Dictionary Investing Markets Personal Finance Active Trading Forex Professionals Tutorials Vomma The rate at which the vega of an option will react to volatility in the underlying market. It is the second order derivative of the option value with respect to volatility. It demonstrates the convexity of vega. A positive value for vomma indicates that a percentage point increase in volatility will result in an increased option value, known as positive vega convexity. Vomma is part of the group of measures known as the "Greeks" (other measures include delta, gamma and vega) which are used in options pricing. Investopedia Says: Vomma is considered one of the more important option pricing Greeks, especially for options that are... Learn More Share: Getting To Know The "Greeks" To become a successful option trader, it is essential to understand what factors influence the price of an option, the "Greeks"... Share: Using "The Greeks" To Understand Options Broken down, the Greeks refer to simple concepts that can help you better understand the risk and reward of an option position... Share: The Basics Of Buying Options For our purposes here, our discussion will focus on options related to the stock market, and how to trade them profitably... Share: The Ins And Outs Of Selling Options This article will explain why options tend to favor the options seller, how to predict success in selling an option and the risks... Share: Capturing Profits With Position-Delta Neutral Trading This article looks at a delta-neutral approach to trading options that can produce profits from a decline in implied volatility (IV)... Share: Out-Of-The-Money Put Time Spreads This article discusses the setup for the trade, the option strategy & the projected profit/loss scenarios given different assumptions... Share: **NEW** Subscription Services: Income Investing subscribe now! ETF Investing subscribe now! Commodities Trading subscribe now! Options Trading subscribe now! Futures Trading subscribe now! Subscription Services: Investing Basics subscribe now! Warren Buffett Watch subscribe now! Forex Weekly subscribe now! Professionals In The Money subscribe now! Chart Advisor subscribe now! Stock Watch Weekly subscribe now! Personal Finance subscribe now! News To Use subscribe now! Related Slideshows: 1. 6 Ways To Make Better Options Trades 2. What Is Your Risk Tolerance? 3. 10 Reasons To Add ETFs To Your Portfolio 4. 8 Ways To Survive A Market Downturn 5. 8 Signs Of A Doomed Stock Related FAQs: 1. What is the difference between an options contract and a futures contract? 2. When holding an option through expiration date, are you automatically paid any profits, or do you have to sell the option and pay commissions? 3. Should I buy options that are in the money or out of the money? 4. Can an option have a negative strike price? 5. What happens to my call options if the underlying company is bought out? Videos More Videos » Understanding Out Of The Money Options Put Option Basics Call Option Basics Understanding Beta Understanding Fundamental Vs. Technical Analysis You are currently subscribed as: udin.n.teta.finance@blogger.com Unsubscribe | Manage Subscriptions | Subscribe Investopedia.com A Division of Valueclick, Inc. Copyright © 2013 All Rights Reserved Follow us on: