How Does the Concept of ‘Delta’ Apply to a Cryptocurrency Options Position?

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 increase by $0.50 for every $1 increase in the crypto price.

It also represents the approximate probability that the option will expire 'in-the-money.' Delta is crucial for hedging and understanding the directional exposure of an options portfolio.