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What are the recommended delta values for call options when trading cryptocurrencies?

avatarNilsson KeeganNov 26, 2021 · 3 years ago3 answers

When trading cryptocurrencies, what are the delta values that are generally recommended for call options?

What are the recommended delta values for call options when trading cryptocurrencies?

3 answers

  • avatarNov 26, 2021 · 3 years ago
    The recommended delta values for call options when trading cryptocurrencies vary depending on the risk tolerance and trading strategy of the individual trader. Generally, a delta value of 0.5 or higher is considered to be more aggressive, indicating a higher probability of the option expiring in-the-money. On the other hand, a delta value of 0.3 or lower is considered to be more conservative, indicating a lower probability of the option expiring in-the-money. It's important to note that these are just general guidelines and traders should consider their own risk appetite and market conditions when determining the delta values for their call options.
  • avatarNov 26, 2021 · 3 years ago
    When it comes to delta values for call options in the world of cryptocurrencies, there is no one-size-fits-all answer. The recommended delta values can vary greatly depending on factors such as the specific cryptocurrency being traded, market volatility, and the trader's risk tolerance. Some traders may prefer higher delta values for more aggressive trading strategies, while others may opt for lower delta values for a more conservative approach. It's important to carefully analyze the market conditions and consider your own risk appetite before deciding on the delta values for your call options.
  • avatarNov 26, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, recommends considering delta values between 0.3 and 0.7 for call options when trading cryptocurrencies. These values provide a balance between risk and potential profitability. However, it's important to note that delta values should not be the sole factor in determining the suitability of a call option. Traders should also consider other factors such as implied volatility, time to expiration, and the underlying cryptocurrency's price movement. It's always a good idea to consult with a financial advisor or conduct thorough research before making any investment decisions.