How Does the Concept of 'Greeks' in Options Trading Relate to Managing Risk in a Volatile Governance Token? ▴ Learn

How Does the Concept of ‘Greeks’ in Options Trading Relate to Managing Risk in a Volatile Governance Token?

The Greeks (Delta, Gamma, Theta, Vega, Rho) quantify the different sensitivities of an option's price to various factors. For a volatile governance token, Delta measures directional exposure, Gamma measures the rate of change of Delta, and Vega measures sensitivity to volatility.

A large holder can use these metrics to construct a portfolio of options that precisely hedges against specific risks, such as high volatility (Vega) or sudden price moves (Gamma).

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