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.