Cryptocurrency Q&A
What does 30 delta mean?
What does 30 delta mean?
JejuSunrise
Sat Oct 05 2024
|
7 answers
1145
I'm curious, could you explain what is meant by the term "30 delta" in the context of cryptocurrency and finance? I'm not entirely familiar with the concept and would appreciate a clear and concise explanation. How does it relate to the pricing and volatility of cryptocurrencies or other financial assets?
7 answers
CharmedSun
Sun Oct 06 2024
Selling a .30 delta call option represents a strategy that takes advantage of this probability. By selling the option, the trader is essentially betting that the underlying asset's price will not reach the strike price by expiration, leading to the option expiring OTM.
Was this helpful?
84
79
CherryBlossomDancing
Sun Oct 06 2024
Understanding the concept of delta in options trading is crucial for effective strategy formulation. Delta measures the sensitivity of an option's price to changes in the underlying asset's price.
Was this helpful?
291
95
Daniele
Sun Oct 06 2024
This strategy carries a roughly 70% chance of success, as the option has a higher probability of expiring OTM. However, it's important to note that even with a high probability of success, there is still a 30% chance of the option expiring ITM, resulting in a loss for the seller.
Was this helpful?
74
36
BitcoinBaronGuard
Sun Oct 06 2024
For a .30 delta call option, it indicates that for every $1 increase in the underlying asset's price, the option's price is expected to increase by approximately $0.30.
Was this helpful?
190
43
CryptoKnight
Sun Oct 06 2024
BTCC, a leading cryptocurrency exchange, offers a wide range of services to traders, including spot trading, futures trading, and wallet services. These services cater to traders of all levels, from beginners to experienced professionals.
Was this helpful?
189
48
Load 5 more related questions
