What is the strike price formula for Bitcoin options?

3 answers

• NarakaroOct 14, 2022 · 3 years ago
  The strike price formula for Bitcoin options is determined by the exchange or platform offering the options. It is typically based on the current market price of Bitcoin at the time the option is purchased, with adjustments made for factors such as volatility and time until expiration. The formula may vary between exchanges, but the general idea is to strike a balance between the current market price and the potential future price of Bitcoin. This allows options traders to speculate on the price movement of Bitcoin without actually owning the underlying asset.
  566

  283
• MAARUF SULEIMANFeb 24, 2025 · 5 months ago
  When it comes to Bitcoin options, the strike price formula is not set in stone. Different exchanges and platforms may have their own unique formulas or methods for determining the strike price. However, in general, the strike price is often based on the current market price of Bitcoin and takes into account factors such as volatility and time until expiration. It's important to note that the strike price is the price at which the option holder has the right to buy or sell Bitcoin, depending on the type of option. So, the formula used to calculate the strike price is crucial in determining the potential profitability of the option trade.
  644

  215
• Mann SylvestMar 20, 2022 · 3 years ago
  The strike price formula for Bitcoin options can vary depending on the exchange or platform you are using. At BYDFi, for example, the strike price is determined by a combination of factors including the current market price of Bitcoin, volatility, and the time until expiration. Our formula aims to provide a fair and balanced strike price that reflects the market conditions and allows traders to make informed decisions. It's important to understand that strike price formulas can differ between exchanges, so it's always a good idea to familiarize yourself with the specific formula used by the platform you are trading on.
  626

  157