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How Is the Strike Price Chosen for a Bitcoin Option?

The strike price for a Bitcoin option is chosen by the options exchange, which lists a standardized set of strike prices at regular intervals (e.g. every $500 or $1,000) around the current spot price of Bitcoin. Unlike customized OTC options, exchange-traded crypto options are standardized to ensure liquidity and ease of trading.

The exchange ensures a range of strikes are available to accommodate various bullish and bearish market views.

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