In Cryptocurrency Options, How Does High Implied Volatility Affect the Delta of OTM Options?

High implied volatility (IV) generally increases the Delta of OTM options. IV reflects the market's expectation of future price swings.

Increased IV increases the probability that an OTM option will move into the money before expiration. Since Delta is a measure of this probability, a higher IV pushes the OTM call Delta closer to 0.50 and the OTM put Delta closer to -0.50.