Feb 10, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Mixed Job Reports Rattle Market

The recent Bureau of Labor Statistics report indicates that U.S. job growth is slowing, yet remains healthy. Nonfarm payrolls grew by 143,000 last month, with upward revisions for November and December 2024, as they added 100,000 jobs. The unemployment rate has dipped to 4.0%, demonstrating a robust labor market, although the annual revisions suggest job gains were softer than initially reported, averaging 166,000 per month in 2024.

Simultaneously, inflation expectations are rising, driven partly by tariffs proposed by U.S. president Trump. Data from the University of Michigan reveals consumers anticipate price increases, which may complicate the Federal Reserve's decision-making. Fed officials have indicated they aren’t in a rush to lower interest rates further after a series of cuts last year, suggesting they prefer to observe how the economy reacts to potential policy changes.

The job growth in January 2025 was primarily concentrated in health care, retail and government sectors, while mining and manufacturing faced declines. Severe weather conditions contributed to nearly 600,000 people missing work, the highest impact in four years.

Despite these fluctuations, hourly wages increased by 0.5% month-over-month and 4.1% year-over-year, reflecting pressure on wages amid labor market tightness. The participation rate in the labor force stands at 62.6%, with notable contributions from foreign-born workers, highlighting immigration as a critical factor in employment growth.

As the Fed assesses the stability of the labor market, upcoming directives from the Trump administration, including potential immigration restrictions, could impact future job growth and economic conditions. While the landscape shows signs of moderation, it remains resilient, with cautious optimism surrounding economic stability.

Weekly Crypto Highlight — Crypto IPOs Coming

As reported, Gemini, the cryptocurrency firm founded by the Winklevoss twins, is potentially exploring an 

 (IPO) this year. The company is currently discussing the listing with potential advisers, although no final decisions have yet been made.

Bullish Global, a crypto exchange operator whose backers include billionaire Peter Thiel, is considering an IPO as soon as this year.

The interest in going public comes amid a surge of crypto firms accelerating their IPO plans since President Trump's election, as he has shown support for the industry. The Winklevoss twins, known for their legal battles with Facebook's Mark Zuckerberg, previously donated Bitcoin exceeding the campaign contribution limit to Trump, later receiving a refund for the excess.

Gemini employs over 500 people across several global locations, including New York, Seattle and London. Recently, the firm agreed to pay $5 million to settle a Commodity Futures Trading Commission (CFTC) lawsuit alleging it misled regulators while trying to launch the first U.S.-regulated Bitcoin futures contract. Additionally, Gemini has committed to returning at least $1.1 billion to customers affected by the Genesis Global Capital bankruptcy as part of a settlement with New York regulators relating to its Gemini Earn program.

Advanced

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Weekly Institutional Insights: Mixed U.S. Job Reports; Crypto IPOs Coming

Our weekly crypto derivatives analytics report delves into macro events and the current state of crypto and trading signals from spot trading volume, as well as futures, options and perpetual contracts.

Another week brought another risk-off event in the crypto market, reflecting its correlation with equities. Despite last week's sell-off, BTC outperformed the broader market with a milder decline, evident in its derivatives positioning. Options markets initially priced short-term volatility higher, but the inversion resolved quickly. In contrast, ETH experienced a sharper inversion, with significant spikes in short-term options and realized volatility. A liquidation event led to an estimated $10 billion loss in open interest for perpetual swap contracts, 

. This bearish sentiment was reflected in funding rates, with altcoins showing a more persistent negative trend post-crash as compared to BTC.

Open interest collapsed across major tokens, flipping funding rates negative, except for BTC. ETH's realized volatility surged above 140%, its highest level in over three months, with the implied volatility term structure spiking and remaining inverted days after the crash.

Please check out the report’s highlights.

Open Interest Falls During Painful Liquidation Event

Another Monday sell-off occurred alongside a decline in U.S. equities and other risk-on assets due to fears over Trump tariffs, leading to a drop in perpetual swap positioning. Nearly $3.1 billion in open interest was wiped out from the perpetual swap markets of BTC, ETH, XRP and SOL after a late-Friday high. This decline was likely driven by liquidated leveraged positions, as traders missed margin calls during the rapid drop in spot prices. Bybit CEO Ben Zhou estimated that the true notional value of liquidated positions across markets may have ranged from $8 billion to $10 billion. The sell-off also triggered the largest spike in trading volumes in over a month, with $31 billion in perpetual swap contracts traded on Feb 2, 2025 across the four major tokens’ markets.

Altcoin Funding Rates in Negative; BTC Clings to Neutral Rates

A second consecutive Monday-morning sell-off has kept perpetual swap funding rates low and negative, indicating excess demand for leveraged short exposure. This trend likely stems from the liquidation of long positions, due to the sharp correction in spot prices. Notably, altcoins' funding rates have shown more consistency since February 3, 2024, reflecting their steeper declines as compared to BTC’s.

ETH's spot price experienced a deeper correction than BTC’s during Monday's sell-off, dropping below $2.5K. Surprisingly, options market activity remained steady, likely due to fewer at-risk leveraged long positions to liquidate, thus keeping open interest levels firm. However, the spot move caused realized volatility to spike near 140%, with options markets pricing in a significant term structure inversion that has yet to be resolved. ETH's implied volatility is approximately 15 points higher than BTC's at equivalent tenors, indicating that traders expect continued volatility in ETH's spot price.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Feb 5, 2025): Record Liquidations Result From Perp; Traders Expect More Volatility in ETH

Victoria VR leverages AI and blockchain to enhance gaming with immersive VR experiences, AI-driven interactions, and a self-sustaining digital economy.

With over 3 billion gamers worldwide (and counting), the 

 industry needs to constantly find new and innovative ways to keep their myriad participants entertained and engaged. Technologies such as virtual reality (VR) and the 

, which include augmented reality (AR) and 

, have contributed substantially to creating an immersive gaming experience.

As the metaverse continues to unlock endless opportunities for the gaming world, Victoria VR has set out on a mission to integrate artificial intelligence (AI) to improve gaming experiences.

Let’s take a deeper look at Victoria VR and the way it’s leveraging AI to tap into the gaming metaverse and upgrade users' experiences.

Victoria VR is a blockchain-powered virtual reality (VR) AI metaverse designed to leverage AI and VR to provide an immersive web3 gaming experience. 

The Victoria VR blockchain project is on a mission to create a thriving and immersive infrastructure in which the gaming world can explore its metaverse in an enhanced way.

Through AI, Victoria VR provides gaming developers with AI tools to build immersive games in a secure, transparent and scalable ecosystem. With features like the VR AI Builder and AI Agents, Victoria VR provides an AI-powered ecosystem to interact with its metaverse.

Its native token, VR, is poised to provide users with a self-sustaining virtual economy in which gaming, blockchain, the metaverse and VR content creation can interact cohesively.

To shape the future of VR through an AI-powered metaverse for immersive gaming, Victoria VR has created the following features.

The VR AI Builder is designed to simplify developers' challenges when creating VR content. Currently, VR game development requires programming skills and significant resources in terms of time and money. However, the VR AI Builder is integrated with OpenAI, making it simple to use with simple text commands. With VR AI Builder, anyone can quickly create VR content, thereby reducing costs, saving time and supporting scalable growth. It also supports integrating new AI technologies as they continually emerge.

The VR AI Builder empowers both novices and experienced developers to create and expand virtual worlds, complete with games and assets. Furthermore companies can use the VR AI Builder to create virtual buildings, showrooms and storefronts; simulate training; and provide immersive experiences to their customers.

The VR AI Builder is driven by the VR token, which plays a crucial role in building and monetizing virtual worlds.

At the heart of Victoria VR’s metaverse are its AI Agents, autonomous and intelligent creations that can independently interact and adapt in a virtual environment. These agents learn user behaviors and preferences in order to provide customized and effective support.

Creating VR AI Agents on the platform is accessible to everyone, and doesn’t require advanced technical knowledge. Some specific roles these agents can perform include NPCs in games, shopping assistants in virtual stores and even virtual teachers.

VRtap is a Telegram-based clicker PvP game by Victoria VR that uses feng shui to immerse players in an elemental adventure, helping the project community stay connected and engaged.

Some of the features of VRtap include the following:

VR is the native token that powers the Victoria VR platform. It's designed to facilitate seamless interaction on the platform and ensure a self-sustaining economy. The total supply of VR is 16.8 billion tokens, with a current circulating supply of just under 6.85 billion.

As a utility token, VR has numerous use cases on the platform, including staking, governance and diverse use in powering Victoria VR's AI and gaming aspects.

The VR token is crucial to the self-sustaining aspect of Victoria VR's gaming pillar. It’s designed to ensure long-term sustainable value for the various stakeholders in the ecosystem.

The VR token is essential for accessing and monetizing the VR AI Builder feature. Builders need VR tokens to buy VR land in order to start using the feature. Once you have VR content, you can monetize it and receive payments in VR tokens.

Furthermore, the platform collects part of the fees generated through this feature in the form of VR tokens, which boosts circulation and enhances token utility.

The VR token helps create and fuel intelligent virtual experiences through VR AI Agents on Victoria VR. VR tokens’ use cases for VR AI Agents include the following:

VR tokens facilitate user interaction with the Victoria VR metaverse via both PC and mobile versions. Users can earn VR tokens through activities such as mining and community engagement. These tokens also ensure a cross-platform economy, whereby VR tokens earned from either version can be used across the Victoria VR ecosystem.

 Perpetual contract in the Innovation Zone with up to 20x leverage. Tokens listed in the Innovation Zone are typically from new projects that may be subject to higher volatility.

As of Feb 7, 2025, Victoria VR's price was $0.007863, a 98.7% drop from its all-time high (ATH) price of $0.61 on Dec 10, 2021, and a 67.7% increase from its ATL of $0.0047 on Jan 3, 2023.

Price prediction experts are cautiously bullish on the future price of the VR token. Experts at CoinCodex believe that VR 

 a maximum price of $0.01 in 2027, and increase to $0.03 in 2030. Meanwhile, DigitalCoinPrice’s forecasting experts believe that VR 

 $0.028 in 2027 and reach $0.0425 by 2030.

That said, these bullish predictions don't guarantee the future price of VR. We highly recommend you 

 before investing in VR or any other cryptocurrency.

Victoria VR is redefining the metaverse with its AI-driven, hyperrealistic virtual world. By blending blockchain technology with immersive VR, it offers an unparalleled digital experience so users can explore, interact and create with limitless possibilities.

Victoria VR’s integration of AI into gaming through the VR AI Builder and AI Agents gives it a competitive edge, and makes the project stand out in the web3 space, making its native token, VR, an asset to watch in the web3 space.

Beginner

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Victoria VR (VR): The Ultimate AI-Driven Metaverse Experience

Explore the difference between Spot and Perpetual Futures and find out how you can navigate volatile markets with these two trading methods.

Bitcoin moves 20% in an hour. Ethereum nose-dives as a whale dumps holdings. The crypto market is a poster child of volatility, and panicked traders may scramble. Others, calmer, may seize the chaos in order to profit. What separates these two outcomes? Often, it’s the trader’s hard choice of weapon.

Although spot trading and perpetual futures are both popular trading methods in crypto, their mechanics — and risks — are worlds apart. Spot trading offers simplicity and direct ownership, while perpetual futures provide leverage and flexibility. Each method carries its unique risks. 

In volatile markets, these tools behave differently, and a poor understanding of their dynamics can turn a calculated risk into a catastrophe. This article dissects spot and perpetual futures, explains why volatility amplifies their risks — and shows you how to choose the right strategy when markets go haywire. 

 is the buying or selling of a digital asset (like 

) for immediate delivery and settlement at its current market price. When you trade on spot, you directly exchange cash or 

 for the asset, with no expiration dates, 

You directly and physically own the asset as soon as the transaction is completed. The trade is settled on the spot (hence the name), meaning the exchange of the asset and the payment happen almost instantaneously, eliminating the risk of price fluctuations during the settlement period.

Say Bitcoin is priced at $100,000, and you buy 1 BTC on a spot exchange such as Bybit. You pay $100,000 (or equivalent in stablecoins) and immediately receive the Bitcoin in your wallet. If the price crashes to $90,000 the next day, your BTC is now worth $90,000 — a 10% loss. If, on the other hand, it surges to $106,000, your gain is 6%. The risk and reward are straightforward: you’re fully exposed to the asset’s price movement, with no amplified gains or losses. 

Here’s a visualization of the mechanics:

[Crypto Exchange] → [Deposit Fiat Currency/Stablecoins] → [Purchase Cryptocurrency on Spot Market] → [Wallet] 

 (or "perps") are derivative contracts or agreements to buy or sell an asset at a predetermined price at any time in the future. They let traders speculate on an asset’s price without ever taking ownership of it. 

Unlike traditional futures, which expire on a set date, perpetuals have no expiration — hence the name. Instead, they rely on funding rates to tether their prices to the underlying spot market. If combined with leverage, they’re a high-risk, high-reward tool for potentially profiting in volatile markets. 

Perpetual futures allow traders to use leverage, meaning the exposure is larger than the initial capital. For example, with 10x leverage, a $1,000 margin lets you open a $10,000 position. If Bitcoin rises 10%, your profit is $1,000 (10% of $10,000), doubling your initial margin. But if Bitcoin drops 10%, you lose your entire margin ($1,000) and face 

. Leverage magnifies volatility’s impact, turning small price swings into existential risks.

 is the collateral required to open a leveraged position (e.g., $1,000 for a $10,000 position at 10x), while the 

 is the minimum collateral needed to keep the position open. If your margin falls below this threshold, due to losses, you must add more funds or the exchange liquidates your position automatically. 

Let’s assume you open a 10x long on Ethereum with a $1,000 margin. If ETH drops 9%, your loss is $900, leaving $100 in margin. If the maintenance margin is 5% ($50), you’re still safe. But a 10% drop in Ethereum wipes out your margin, triggering liquidation. 

Funding rates are periodic payments (usually every eight hours) between 

 traders to keep perpetual futures prices close to the spot price. A positive funding rate exists when longs pay shorts. This happens when perpetuals trade above the spot price, incentivizing traders to sell (short). Negative funding rates — meaning that shorts pay long — occur when perpetuals trade below the spot price, encouraging buying (going long). 

In volatile markets, funding rates can swing wildly. For example, during a Bitcoin rally, excessive bullish sentiment may push perpetuals’ prices above spot prices, forcing longs to pay hefty fees to shorts. 

Trading a perp looks something like this:

[Trader’s Margin] → [Leverage (e.g., 10x)] → [Open Position] 

[Price Movement] → [Profit/Loss Calculated in Real Time] 

[Funding Rate Payments] (Every 8 Hours) 

[Liquidation if Margin < Maintenance Threshold] 

The Crucial Difference: Pricing Mechanisms

Traders must understand how prices are set in spot trading versus perpetual futures, especially in volatile markets, as mispricing can lead to unexpected losses or missed opportunities. 

 on a single exchange. When you buy Bitcoin on Bybit, the price reflects the highest 

 (sell order) in Bybit’s order book at that moment. When more people want to buy an asset than sell it, the price increases. Conversely, when more people want to sell than buy, the asset’s price drops.

However, spot prices can vary wildly between exchanges. High-volume exchanges, such as Binance or Bybit, typically have tighter 

 (smaller gaps between bid/ask prices). Regulatory restrictions and/or regional buying/selling pressure can also create price disparities. 

Perpetual futures prices aren’t tied to a single exchange. Instead, they track an index price, a weighted average of spot prices from multiple reputable exchanges. This arrangement prevents manipulation, and ensures fairness.

First, reputable exchanges with strong liquidity, such as Binance, Bybit and Kraken, are selected as contributors. Weights are then assigned based on trading volume, giving greater influence to exchanges with higher activity. The index price is computed using a weighted average, whereby (for instance) Binance contributes 50%, Bybit 30% and Kraken 20%, resulting in a balanced and representative market price.

Here’s a visual aid for the calculation: 

Index Price = (Binance Price × 50%) + (Bybit Price × 30%) + (Kraken Price × 20%).

Perpetual Futures Price ≈ Index Price + Funding Rate Adjustments 

Withdrawal halts occur when exchanges temporarily block users from moving assets off-platform. They are rare but catastrophic events, often triggered by extreme volatility, regulatory crackdowns or security breaches. These halts expose the fragility of spot markets, while highlighting the resilience of perpetual futures.

Imagine an exchange suddenly halts withdrawals. Its spot market turns into an isolated bubble, cut off from the broader crypto ecosystem. Here’s how this could happen:

 traders help balance prices across exchanges. If BTC is cheaper on one platform, some traders will buy it there and sell it on another where Bitcoin’s price is higher, keeping prices in sync. But when withdrawals are frozen, traders can’t move assets, making cross-exchange arbitrage impossible.

Let’s say Binance halts BTC withdrawals during a market crash. Panic selling on Binance drives BTC’s price down to $25,000, while on Bybit, it remains at $28,000. Under normal conditions, arbitrageurs would step in, buying cheap BTC on Binance and selling it on Bybit to close the gap. But with withdrawals locked, Binance’s price remains disconnected.

With liquidity trapped, bad actors can exploit the situation. A 

 could dump BTC on Binance, crashing its price to $22,000, while Bybit keeps trading at $28,000. Retail traders on Binance would suffer large losses as they’d be unable to transfer assets or take advantage of the price difference.

When withdrawals freeze, spot markets fracture, leaving traders stranded in a distorted price bubble, with no hope of escape until normal operations resume.

Perpetual futures contracts avoid the chaos of isolated spot markets by relying on an index price aggregated from multiple exchanges. This mechanism keeps them anchored to the broader market, even when individual platforms experience disruptions. 

For example, if Binance suddenly halts withdrawals, its BTC price may diverge from the rest of the market. However, because the index also includes prices from exchanges like Bybit and Kraken, it remains stable. Even with Binance carrying a 50% weight in the index, Bybit (30%) and Kraken (20%) ensure that the final calculation reflects a more accurate market value. This mechanism prevents traders from becoming trapped in a price bubble caused by a single exchange’s issues.

Another advantage is resistance to manipulation. If a bad actor tries to crash BTC’s price on one exchange, their influence on the index remains limited. To meaningfully distort the index price, they would need to control multiple major exchanges — a far more challenging and costly feat. 

This hardiness makes perpetual futures a more reliable option during crisis scenarios. Spot traders may get stuck with distorted prices when withdrawals are halted, but perps remain tethered to a broader market view. While they’re not immune to volatility, their reliance on aggregated data provides a crucial safeguard. However, traders must also consider funding rates and leverage risks.

Navigating a Withdrawal Halt: Staying Calm and Informed 

A crypto withdrawal halt — whether due to a flash crash, regulatory action or technical failure — can send traders into a frenzy. Prices may swing unpredictably as speculation runs wild and liquidity dries up. Nevertheless, survival in these moments is about keeping a level head.

Before making any moves, verify the situation. Fear-driven rumors spread fast, but official channels provide the facts. Exchanges like Bybit now offer real-time transparency on liquidations via their APIs, and CEO Ben Zhou has been vocal about publishing 

 during crises. Trust credible sources, not whispers from anonymous Telegram groups.

Emotional trading is the fastest way to lock in losses. Spot market prices on a halted exchange can detach from reality, plunging far below the broader market. Selling into that panic only benefits manipulators. Likewise, overleveraging on perpetual futures can backfire during times of extreme volatility. Traders who endure these moments best are the ones who stick to their risk management principles and wait for conditions to stabilize.

Bybit is setting new standards by committing to transparency, publicizing real-time liquidation data and encouraging open communication. During times of uncertainty, reliable data keeps traders grounded, helping them separate signals from noise and navigate volatility with clarity rather than fear.

Volatile markets test the strengths and weaknesses of both spot and perpetual futures trading. 

Cryptocurrency markets thrive on volatility, but surviving and profiting from volatility depends upon choosing the right tools. Spot trading offers direct asset ownership, simplicity and no liquidation risk, but it can be vulnerable to exchange-specific halts and price slippage during market turmoil. On the other hand, perpetual futures trading allows traders to profit in any market direction, benefit from leverage and avoid single-exchange manipulation through index-based pricing, but it also carries liquidation risks, complexity and funding rate costs. 

Regardless of your trading method of choice, risk management is crucial. Educate yourself and set 

 to minimize exposure. In addition, dive into Bybit’s 

 to sharpen your edge, and learn how to get started with 

Intermediate

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Spot vs. Perpetual Futures: Stay Ahead of the Curve in Volatile Markets

Options

For anyone who has ever traded Options, or is looking to do so, the Option greeks — delta, vega, theta, gamma and rho — are a must-know. Find out why.

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If you're new to Options trading, you may have heard the term "Greeks", but are unsure as to what it means. So — what are the Greeks, and how can they help you become a more successful Options trader?

In short, the Greeks are a set of criteria used by Options traders to understand how the price of an Option reacts to changes in certain variables. There are five main Options Greeks: 

Don't be intimidated by these terms: They’re likely less complicated than you think. In this article, we'll walk you through each Greek, explaining how it can help you minimize the risks and enjoy the advantages of Options trading.

Before that, let's get acquainted with Options as a whole.

The first thing to know is that Options are a type of 

 contract. This means they derive their value from an underlying asset, such as a stock, commodity, index or 

Options have an agreed-upon price (known as the 

), at which the buyer gains long or short exposure to the underlying asset. Options always have a predetermined expiration date, at which the contract becomes void.

There are two types of Options contracts: 

The Option contract buyer always pays a fee known as the “Option premium” to the seller. The premium's value is determined by the strike price and the number of days-to-expiration (DTE). For the buyer, the premium represents the maximum potential loss. For the seller, the premium is the maximum potential profit.

Option traders describe strike prices in three ways:

The Greeks are a set of measures used by traders to manage risk and forecast the profit potential of an Option strategy.

When combined, the Greeks can show us how an Option will react to changing market conditions at different points in time. Each of the Greeks affects Option premiums in its own unique way.

Delta is a ratio that calculates how much an Option's price changes when the underlying asset price goes up by $1.00.

For example, a call Option with a delta of 0.50 will increase in value by $0.50 when the underlying moves $1.00 higher. Conversely, a put with a delta of −0.50 will lose $0.50 when the underlying goes up by $1.00.

Delta also represents a strike's odds of expiring in-the-money. When an Option has a delta of 0.60, it has a 60% chance of expiring ITM at that point in time.

Delta can also be viewed as the amount of exposure you have to the underlying asset at that exact moment, relative to the size of your Option position.

For instance, let’s assume you buy a $25,000 OTM call Option on BTC (contract size of 1.0 BTC) with a delta of 0.30. At that moment, your call Option will make or lose the same amount of money as if you were holding 30% of the underlying security (1.0 BTC × delta of 0.30 = 0.3 BTC).

If the value of BTC jumps to $25,000, and the delta increases to 0.50, your exposure will then be equal to 50% of the underlying (1.0 BTC × 0.50 = 0.5 BTC).

A few things to keep in mind about delta:

Vega tells us how much we can expect an Option's price to change if implied volatility moves 1.00%.

Implied volatility (IV) is the Options market's way of predicting how much an asset will fluctuate in the future. When the market expects greater movement, implied volatility rises, increasing the cost of Option premiums.

Theta (also known as time decay) measures the rate of change in an Option premium relative to time — specifically, how much value an Option will lose to time decay in the next 24 hours.

When it comes to time decay, here are some things to keep in mind:

Gamma measures the rate of change in delta relative to a $1.00 move in the underlying asset. Think of delta as the speed at which an Option's value changes, and gamma as its accelerator.

Assuming a call Option has a delta of 0.30, we know it should increase in value by $0.30 when the underlying moves $1.00 higher ($1.00 × 0.3 = $0.30). We've also learned that call Option deltas increase when the underlying asset’s value goes up — it's gamma that tells us 

If the same Option has a gamma value of 0.10, following the $1.00 move up, the delta increases to 0.40 (delta of 0.30 + gamma of 0.10 = 0.40). Subsequently, the next time the underlying moves up $1.00, the premium gains $0.40.

It's helpful to think of gamma as a measure of uncertainty:

More uncertainty as to whether an Option will expire ITM.

Less uncertainty surrounding the Option's prospects.

Rho measures sensitivity to changes in the risk-free interest rate (typically that of U.S. Treasury bills).

Option traders consider rho to be one of the “lesser” Greeks, as it has a limited impact on premiums — especially near-dated Options.

When it comes to rho, there are, however, some things to consider if you're planning to trade longer-dated Options:

To get a better sense of how different strike prices and maturities impact the Greeks, let's compare two different scenarios.

The ITM call has the highest premium and delta. However, it's also the least sensitive to gamma, vega and theta.

As expected, the ATM call has a delta close to 0.50. The strike also has the highest gamma, vega and theta values.

The OTM call has the lowest premium and delta. You'll also notice that because it's closer to the underlying price than the $28.00 call ($3.00 away instead of $4.00), it's more sensitive to the influences of vega, theta and gamma. Since all three strikes are near-dated, rho doesn’t come into play.

Now, let's examine what happens to the Greeks if we extend the contract's maturity.

Apple Inc. Call Options — Expiration: 16 DEC 2022 — 70 DTE

As expected, the ITM call has the highest premium and delta. You'll also notice that because the Option has 70 DTE, it becomes sensitive to rho — in this case, the ITM calls are the most sensitive.

As the 155.00 call is closest to the current price, it has the highest gamma, vega and theta.

As we move further away from the current price, sensitivity to gamma, theta and vega declines.

Note that regardless of the strike price, the 70 DTE calls are less sensitive to theta than the 10 DTE strikes in example 1 (time decay is slower for longer-dated options).

While it's helpful to know how each of the Greeks works, it’s especially crucial to understand delta and theta before trading Options. 

By becoming aware of an option's delta, you'll always know your immediate exposure and the odds of whether your trade will be profitable. Theta is the next concept that all Options traders should strive to master. The key to making the right investment decision is knowing how much value your Option will lose each day as expiration nears.

Remember — all things being equal, an Option loses value as time passes. For this reason, time decay is an Option seller's best friend … and an Option buyer’s greatest enemy.

Although volatility isn’t an immediate member of the Greek family, it’s still a factor to consider. We can think of volatility as a close relative of vega’s.

 is a measure of how much an asset price fluctuated during a certain period in the past.

While historical volatility tells you how much an asset moved in the past, 

 (or IV) reveals how much the Options market expects the asset to move in the future.

The thing to remember about IV is that it's purely theoretical — so it's impossible for anyone, even experts in the field, to predict the future with complete certainty. IV is, however, useful in determining whether Option prices are cheap or expensive.

In stocks investing, the golden rule is to buy low and sell high, and the same is true with Options. By buying Options when IV is low, and selling when it’s high, you significantly increase your chances of success.

Since IV often reverts to its mean over time, successful Options traders usually gauge whether IV is high or low relative to historical volatility before deciding whether to buy or sell Options.

One of the biggest mistakes a rookie trader can make is to dive into Options before gaining a basic understanding of the Greeks.

Without knowing how an Option will react when the underlying moves — or as time passes — it's difficult to make an informed investment decision. That's why, on your Options trading journey, the first step to take is to learn as much as you can about delta and theta.

Once you’ve gotten a solid grasp on those two concepts, you'll be well-equipped to tackle basic Options strategies. To attempt more advanced, higher-risk plays, go one step further to learn about gamma and vega.

The beauty of Options is that they are incredibly flexible, providing more ways to profit than spot or 

Whether your goal is to speculate, generate passive income, or even 

, Options have you covered. You can structure Options to suit your risk appetite and level of experience, and learning about Options Greeks is an excellent first step to take. We recommend that you experiment with different strategies on Bybit's

 before trading Options in real time. Happy exploring!

Option Greeks: Important Symbols Every Trader Must Know

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards