Vega

Vega measures an option's sensitivity to a 1-point change in implied volatility. Short premium positions are short vega: they profit when IV falls. The earnings and contraction engines are specifically designed to harvest vega contraction: enter when IV is elevated, exit when IV has mean-reverted. The mechanical engine benefits from vega less directly, relying more on theta decay over its 30-65 DTE window.

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This site provides general information about ACondor, a software tool for automating options trading strategies. Nothing on this site is investment, tax, or financial advice. Options trading involves substantial risk of loss. Past behavior of any strategy does not guarantee future results. Consult a licensed financial professional before trading options. ACondor may earn a commission from affiliate links at no extra cost to you.