What is the role of financial options in the economy?
Do financial options assist in stabilizing or destabilizing the stock and commodities markets?
Securities including options don't exist for the purpose of stabilizing or destabilizing the financial markets. Stability is primarily a psychological condition which depends upon investors' confidence of lack thereof, and tends to be overly influenced by recent market behavior. An eight-year bull market makes investors far too confident about the future; a severe two-year bear market like 2000-2002, 2007-2009, and probably 2017-2019 has the opposite impact. Experienced investors can use options as an additional tool in their arsenal, just like having a sophisticated chain-saw can be very valuable for an experienced carpenter. A hack who knows little about the proper use of a saw can end up getting badly hurt by a new chain-saw, just as inexperienced investors can be badly burned by options. The less you know about something, the less you should be involved with it.
If you are talking about puts and calls they neither destabalize or stabalize the markets.
These options give you the right, not the obligation, to buy or sell a stock at a specified price. Most often option positions are closed out prior to exercise with no stock changing hands.
Subjectively speaking yes, financial options or derivatives assist in hedging related financial assets in a portfolio and we're first used by the ancient Greeks to speculate on the olive harvests. In the grand scheme options have been used for over two thousand years to accelerate commerce and economic growth. Options trading also creates jobs, helps institutions manage risk and generates profits for numerous brokerage firms.