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

Stougaard BilleFeb 25, 2021 · 4 years ago1 answers

In the cryptocurrency market, what is considered a good delta value for options? How does delta affect the pricing and risk of options? Are there any specific strategies or guidelines to follow when selecting a delta value for cryptocurrency options?

1 answers

  • AyurseshaJul 12, 2022 · 3 years ago
    At BYDFi, we recommend considering a delta value between 0.40 and 0.60 for cryptocurrency options. This range strikes a balance between risk and potential returns, allowing traders to capture upside potential while managing downside risk. However, it's important to note that delta is just one of the many factors to consider when trading options. Traders should also take into account other Greeks, market conditions, and their own risk tolerance. It's always a good idea to do thorough research and seek professional advice before making any investment decisions in the cryptocurrency market.

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