What Is the Typical Lifespan of an Option Contract in the Crypto Derivatives Market?
The lifespan of an option contract in the crypto derivatives market can vary significantly, ranging from as short as a few hours (daily options) to as long as a year or more (long-term options). The most common expirations are weekly, bi-weekly, and monthly, which cater to the high-frequency trading nature of the crypto market.
Quarterly options also exist, aligning with traditional finance cycles. The choice of lifespan depends on the trader's strategy, with shorter lifespans offering higher leverage but faster Theta decay.