How Does the “Greeks” (Delta, Gamma, Theta, Vega) Apply to a DAO’s Options Trading Strategy?

The Greeks are risk metrics used to measure the sensitivity of an option's price to various factors. Delta measures price sensitivity to the underlying asset's price movement.

Gamma measures the rate of change of Delta. Theta measures the time decay of the option's value.

Vega measures sensitivity to volatility changes. A DAO uses these metrics to dynamically manage the risk and hedge its options portfolio, ensuring its exposure remains within acceptable limits.