Can Commit-Reveal Be Used to Secure an Options Trade Settlement?

Yes, a commit-reveal scheme can be used to secure the settlement of an options trade, particularly in a decentralized options protocol. It can prevent front-running on the settlement process, which might involve a large transfer of collateral or a price oracle update.

The parties could commit to the final settlement parameters (e.g. the exercise price and quantity) before the final price is determined or revealed. This ensures that the final, sensitive transaction is executed without the risk of a front-runner observing the details and acting on the guaranteed price movement.