What Is the Significance of a Delta of 0.75 for a Bitcoin Call Option? ▴ Learn

What Is the Significance of a Delta of 0.75 for a Bitcoin Call Option?

A Delta of 0.75 for a Bitcoin call option signifies that the option's price is expected to increase by $0.75 for every $1 increase in the Bitcoin spot price. It also suggests that the option is In-the-Money (ITM) and has a roughly 75% probability of expiring ITM.

This high Delta indicates a strong sensitivity to the underlying price and is used by traders to determine the required hedge ratio. To perfectly Delta-hedge one such option, a trader would need to short 0.75 units of Bitcoin.

What Is the ‘Delta’ of an Option and How Does It Change as the Option Moves ITM?

How Does Gamma Relate to the Probability of an Option Being ITM at Expiration?

How Is Delta Used as a Probability Estimate for an Option Expiring ITM?

How Does ‘Delta’ Relate to the Probability of an Option Expiring ITM?