What is a good delta for put options?
Excuse me, could you please elaborate on what constitutes a "good" delta for put options? Is there a specific range or value that traders typically aim for when considering put options, or does it vary depending on the individual's investment strategy and risk tolerance? Furthermore, could you explain how the delta of a put option changes in relation to changes in the underlying asset's price and the passage of time, and how this might impact an investor's decision-making process?
What is a delta hedge for put options?
Could you elaborate on the concept of a delta hedge for put options? How does it work and why is it important for investors to understand it? Is it a strategy used to mitigate risk or enhance returns? And could you provide a real-world example to help illustrate the concept?
How to short crypto with put options?
In the world of cryptocurrency investing, the strategy of shorting a crypto asset through the use of put options has become increasingly popular among sophisticated traders. Could you elaborate on the process of executing such a trade? Specifically, I'm interested in understanding how to identify the right put option, the factors to consider while selecting a broker, and the risks involved in this type of trading. Additionally, I'd appreciate insights into how to manage the position effectively and when to consider exiting the trade. Understanding the nuances of shorting crypto with put options would be invaluable for my trading portfolio.