Synthetic Hedged Positions (Trading Perpetuals & Options)

Position Setup:

• Buy 1 ETH on an ETH/USDT perpetual contract at $2,500 using 5x leverage.

• Buy a protective put option on ETH with a $2,400 strike price, expiring in 30 days.

Market Movement:

• ETH price drops to $2,300 in the next week.

Using the Greeks Dashboard:

• Delta Monitoring: The Greeks Dashboard allows you to track delta, which represents the price sensitivity of your position relative to the underlying asset. As the ETH price drops, delta moves closer to -1 for your perpetual position, signaling higher exposure to downside risk. The dashboard helps you stay aware of this shift.

• Gamma Monitoring: With the price movement being sharp, gamma can inform you of how your delta is likely to change with further price moves. As gamma changes, you can decide whether to adjust your perpetual position.

• Theta Monitoring: As the put option nears expiration, theta (time decay) increases, which eats away at the option’s value. The dashboard displays theta, allowing you to evaluate whether to hold or sell the option.

• Net Position: Loss from the perpetual is $1,000, but the put option’s value increases. With Greeks insights, you can track the performance and manage potential adjustments to the hedge.