DEFINITION of 'Kappa'
One of the "Greeks," kappa is the ratio of the dollar price change of an option to a 1% change in the expected price volatility (also called implied volatility) of the underlying asset. Kappa tells investors how much an option's price will change for a given change in implied volatility, even if the actual price of the underlying stays the same. Kappa is higher the further away an option's expiration date is and falls as the expiration date approaches. Just as individual options each have a kappa, an options portfolio has a net kappa that is determined by adding up the kappas of each individual position.
INVESTOPEDIA EXPLAINS 'Kappa'
A positive kappa is associated with a long option and means that the option becomes more valuable as volatility increases, and a negative kappa is associated with a short option and means the option becomes more valuable as volatility decreases. Kappa, also called vega, is one of the most important options Greeks. Other important options Greeks include delta, which measures the impact of a change in the underlying asset's price; gamma, which measures the rate of change of delta; and theta, which measures the impact of a change in time remaining to expiration.

Ultima
The rate at which the vomma of an option will react to volatility ... 
Vomma
The rate at which the vega of an option will react to volatility ... 
Option
A financial derivative that represents a contract sold by one ... 
Volatility
1. A statistical measure of the dispersion of returns for a given ... 
Vega
The measurement of an option's sensitivity to changes in the ... 
Time Decay
The ratio of the change in an option's price to the decrease ...

Options & Futures
Getting To Know The "Greeks"
Understanding price influences on options positions requires learning about delta, theta, vega and gamma. 
Options & Futures
Bettering Your Portfolio With Alpha And Beta
Increase your returns by creating the right balance of both these risk measures. 
Active Trading
The Linear Regression Of Time and Price
This investment strategy can help investors be successful by identifying price trends while eliminating human bias. 
Options & Futures
The Perks of Trading Coffee Options
As more people begin to trade coffee, we explain how coffee options work, who uses them, what drives valuations, and the risks and rewards. 
Trading Strategies
Top Day Trading Instruments
Day trading is an intense and often appealing activity. Investopedia provides the list of top financial instruments for day trading. 
Options & Futures
Give Yourself More Options With Real Estate Options
Real estate options have many benefits, including a smaller initial capital requirement. 
Options & Futures
The Fancy Way To Diversify Your Portfolio: Precious Metal Options
A guide with strategies on how to invest or trade in precious metals by using options. 
Options & Futures
When And How To Take Profits On Options
Here are the different criteria to ensure maximum profit taking while trading options. 
Options & Futures
The Future Is Now: All About Futures ETFs
A new security class  futures ETFs  is gaining popularity. We tell you how futures ETFs work and offer tips. 
Options & Futures
How To Protect A Short Position With Options
Short selling can be a risky endeavor, but the inherent risk of a short position can be mitigated significantly through the use of options.