In Options Trading, How Is a Low-Difficulty Coin’s Volatility Potentially Affected by Its 51% Attack Vulnerability?

The vulnerability to a 51% attack introduces a significant, unquantifiable tail risk. This systemic risk of sudden, catastrophic price collapse due to a successful double-spend attack increases the coin's overall volatility, especially its implied volatility.

Option traders will price this risk into their models, leading to higher premiums for both call and put options, reflecting the possibility of extreme price movements in either direction following an attack or a rumor of one.