How Do Options Contracts Relate to the Volatility of Low-Difficulty Altcoins?

Options contracts, particularly those on highly volatile low-difficulty altcoins, would likely have high premiums due to the extreme price swings and inherent security risks. The high volatility translates directly into a higher implied volatility, which is a key factor in option pricing models like Black-Scholes.

Traders might use options to speculate on or hedge against these wild price movements, including potential collapse after an attack.