What Is the Role of the ‘Greeks’ in Assessing the Risk of a Crypto Option Position?

The Greeks (Delta, Gamma, Theta, Vega, Rho) are a set of risk parameters that measure the sensitivity of an option's price to changes in various underlying factors. They allow traders to quantify and manage the specific risks associated with their option positions, such as the directional risk (Delta), the rate of time decay (Theta), and the sensitivity to volatility (Vega).

Understanding the Greeks is crucial for sophisticated risk management.