Long Vega
A position with positive vega exposure -- typically achieved by being net long options, especially longer-dated and at-the-money strikes. Long-vega positions gain when implied volatility rises (the option market re-prices upward) and lose when IV falls. Long-vega exposure is the dominant Greek for tail-risk hedging strategies because crisis regimes typically combine spot moves with IV expansion: a long-OTM put gains from both the spot move (through delta + gamma) AND from the IV spike (through vega). Long-vega positions are usually short-theta as well, so the carry cost during calm regimes is real.
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Related terms
American Option · Asian Option · Barrier Option · Basket Option · Butterfly Spread · Calendar Spread
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