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What are the recommended delta values for options when investing in cryptocurrencies?

avatarJackDec 18, 2021 · 3 years ago1 answers

When investing in cryptocurrencies, what are the delta values that are generally recommended for options trading? How do these delta values affect the investment strategy?

What are the recommended delta values for options when investing in cryptocurrencies?

1 answers

  • avatarDec 18, 2021 · 3 years ago
    At BYDFi, we recommend considering delta values between 0.3 and 0.7 when investing in cryptocurrencies through options. These values provide a good balance between risk and potential returns. A delta value of 0.5 is often considered a sweet spot, as it indicates a 50% chance of the option expiring in-the-money. However, it's important to remember that delta values are just one of many factors to consider when trading options. Other factors, such as implied volatility, time decay, and market trends, should also be taken into account. It's always a good idea to do thorough research and consult with a financial advisor before making any investment decisions.