How Does the Delta of an ITM Call Option Typically Behave?
Delta is a Greek that measures the option price’s sensitivity to a $1 change in the underlying asset’s price. For a deep ITM call option, Delta approaches 1.0 (or 100).
This means the option price will move nearly dollar-for-dollar with the underlying asset price. This high Delta reflects the high probability of the option expiring ITM.
Glossar
Call Option
Upside ⎊ Acquiring a Call Option provides leveraged upside participation in the appreciation of a specific cryptocurrency asset.
ITM Call Option
Premium ⎊ An ITM Call Option, within cryptocurrency derivatives, signifies a contract where the strike price is below the current market price of the underlying asset, resulting in an intrinsic value component alongside the time value premium.
Deep ITM Call
Valuation ⎊ A Deep In-The-Money (ITM) call option, within cryptocurrency derivatives, signifies a contract where the underlying asset’s market price substantially exceeds the option’s strike price, indicating a high probability of intrinsic value.