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+764 Part VI: Measuring and Trading VolatiRty 
+It's a little unfair to say that, because it's conceivable (although unlikely) that volatil­
+ity could jump by a large enough margin to become a greater factor than delta for 
+one day's move in the option. Furthermore, since this option is composed mostly of 
+excess value, these more dominant forces influence the excess value more than time 
+decay does. 
+There is a direct relationship between vega and excess value. That is, if implied 
+volatility increases, the excess value portion of the option will increase and, if implied 
+volatility decreases, so will excess value. 
+The relationship between delta and excess value is not so straightforward. The 
+farther the stock moves away from the strike, the more this will have the effect of 
+shrinking the excess value. If the call is in-the-money (as in the above example), then 
+an increase in stock price will result in a decrease of excess value. That is, a deeply in­
+the-money option is composed primarily of intrinsic value, while excess value is quite 
+small. However, when the call is out-of-the-money, the effect is just the opposite: 
+Then, an increase in call price will result in an increase in excess value, because the 
+stock price increase is bringing the stock closer to the option's striking price. 
+For some readers, the following may help to conceptualize this concept. The 
+part of the delta that addresses excess value is this: 
+Out-of-the-money call: 100% of the delta affects the excess value. 
+In-the-money call: "1.00 minus delta" affects the excess value. (So, if a call is very 
+deeply in-the-money and has a delta of 0.95, then the delta only has 1.00 - 0.95, 
+or 0.05, room to increase. Hence it has little effect on what small amount of 
+excess value remains in this deeply in-the-money call.) 
+These relationships are not static, of course. Suppose, for example, that in the 
+same situation of the stock trading at 82 and the January 80 call trading at 8, there is 
+only week remaining until expiration! Then the implied volatility would be 155% 
+(high, but not unheard of in volatile times). The greeks would bear a significantly dif­
+ferent relationship to each other in this case, though: 
+Delta: 0.59 
+Vega: 0.044 
+Theta: -0 .5 1 
+This very short-term option has about the same delta as its counterpart in the previ­
+ous example (the delta of an at-the-money option is generally slightly above 0.50). 
+Meanwhile, vega has shrunk. The effect of a change in volatility on such a short-term 
+option is actually about a third of what it was in the previous example. However, time 
+decay in this example is huge, amounting to half a point per day in this option.