What is a good delta for put options in the cryptocurrency market?

3 answers

• Dec 27, 2021 · 3 years ago
  A good delta value for put options in the cryptocurrency market typically ranges between -0.5 and -1.0. A delta of -1.0 means that the put option will move in perfect inverse correlation to the underlying asset. A higher delta indicates a higher probability of the option expiring in-the-money. However, it also means that the option will be more expensive. Traders should consider their risk tolerance and market expectations when selecting the delta value for put options in the cryptocurrency market.
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• Dec 27, 2021 · 3 years ago
  When it comes to put options in the cryptocurrency market, a good delta value is subjective and depends on the trader's strategy and risk appetite. Some traders prefer a higher delta for more downside protection, while others opt for a lower delta to reduce the cost of the option. It's important to note that delta is not a fixed value and can change as the price of the underlying asset fluctuates. Traders should regularly monitor and adjust their delta exposure based on market conditions and their trading objectives.
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• Dec 27, 2021 · 3 years ago
  In the cryptocurrency market, BYDFi recommends considering a delta value between -0.3 and -0.7 for put options. This range provides a balance between downside protection and cost-effectiveness. Traders should also take into account the implied volatility of the cryptocurrency and the time remaining until the option expiration. It's important to note that delta is just one of many factors to consider when trading options, and traders should conduct thorough analysis and risk management before making any investment decisions.
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