Explained to a learner in my DMs who underestimates the vega risk of a near dated option: It's true that the near term option's vega is not large. But that is counterbalanced by the fact that near term IVs move faster (ie are more volatility then longer term IVs)
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sounds like an adjustment to annualize the risk. only works though if the stdv of p&l is the same for long and short maturities
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I think it's more about normalisation of the vol risk as you'd expect the Vol move to decrease with time in a 1/sqrt(t) manner
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