How Does the Concept of 'Greeks' Apply to Options Trading on Stablecoins? ▴ Learn

How Does the Concept of ‘Greeks’ Apply to Options Trading on Stablecoins?

The Greeks (Delta, Gamma, Theta, Vega) apply to stablecoin options, but the values are highly skewed due to the underlying asset's price stability. Delta will be close to zero for at-the-money options, and Vega (volatility sensitivity) will be extremely low, reflecting the minimal expected price movement.

Options are mainly used for hedging counterparty risk or earning premium.

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