vomma

Definition

An option pricing model used to assess trades based on an asset's volatility. The measure is used to gauge rate at which the vega of an option will react to market volatility. A positive value indicates that an increase in volatility will result in the increase of the option's value. The vomma is part of the Greeks family which used in option pricing.

Use vomma in a sentence

You may want to see if you can figure out a way to use vomma to increase your companies yearly profits.

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The vomma model was a good one to use and I thought ti would have a great impact on us and what we did everyday.

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The new intern was much more experienced in assessing vommas and option pricings than any of the other market researchers.

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