How Do “Greeks” like Gamma and Vega Influence a Market Maker’s Spread Adjustments?

Gamma and Vega are key Greeks used for risk management. Gamma measures the rate of change of Delta, indicating how quickly a hedge needs adjustment; high Gamma means higher hedging costs, leading to wider spreads.

Vega measures an option's sensitivity to changes in implied volatility; high Vega means greater risk from IV fluctuations, also resulting in wider spreads to compensate for that volatility risk.