How Does Delta Change as an OTM Call Option Moves Deeper OTM?
As an OTM call option moves deeper out-of-the-money (meaning the underlying crypto price moves further below the strike price), its Delta decreases and moves closer to 0. This signifies that the option's price becomes less and less sensitive to changes in the underlying asset's price, and the probability of it expiring ITM approaches zero.
Glossar
OTM
Horizon ⎊ Options trading, particularly within cryptocurrency derivatives, frequently employs the term OTM to denote options with strike prices significantly beyond the current market price of the underlying asset.
Otm Call Option
Valuation ⎊ An Out-of-the-Money call option within cryptocurrency derivatives represents a contract granting the buyer the right, but not the obligation, to purchase an underlying asset at a specified strike price on or before a predetermined expiration date, where the current market price of the asset is below that strike price.