How Does the Capital Required Compare for DITM Vs. Asset Ownership? ⎊ Path

How Does the Capital Required Compare for DITM Vs. Asset Ownership?

The capital required to buy a Deep In-The-Money (DITM) option is less than the capital required to buy the same amount of the underlying asset outright. The DITM option premium is generally lower than the asset price, providing capital efficiency.

Why Do DITM Options Have Less Time Value than ATM Options?

What Is the Margin Requirement for Writing a Naked Option Compared to a Covered Option?

How Does the Risk Profile Differ between the Two?

Why Is Transparency Less Strict for Derivatives than for Spot Markets?

How Does a Very Deep ITM Option’s Theta Compare to an ATM Option?

Why Are European Options Typically Less Expensive than American Options?

How Is a 51% Attack Easier on a Proof-of-Work (PoW) Coin than a Proof-of-Stake (PoS) Coin?

Why Is It Generally Easier for Retail Traders to Write Covered Options than Naked Options?

Glossar

Ditm Option

Mechanism ⎊ A Ditm Option, within cryptocurrency derivatives, represents a digitally-implemented twin margin option, structured to provide exposure to two underlying assets simultaneously, often a cryptocurrency and a traditional asset like fiat currency or a stock index.