Define the Term “Delta” in the Context of Options Hedging

Delta is one of the "Greeks" and measures the sensitivity of an option's price to a $1 change in the underlying cryptocurrency's price. A delta of 0.50 means the option price will move by $0.50 for every $1 change in the crypto price.

Delta is crucial for hedging as it indicates the number of units of the underlying crypto that the option contract is equivalent to, allowing traders to calculate a delta-neutral hedge.