Skip to main content

Why Do Cryptocurrency Options Typically Have Higher Premiums than Stock Options?

Cryptocurrency options typically have higher premiums due to the significantly higher implied volatility (IV) of the underlying crypto assets compared to stocks. High IV translates directly into higher time value, as the market prices in a greater expectation of large price swings.

Do Cryptocurrency Options Have Higher or Lower Implied Volatility than Traditional Stock Options?
What Is the Relationship between Implied Volatility and Option Premiums?
Is a Deep In-the-Money Option Considered Substantially Identical to the Underlying Stock?
How Does the Strike Price Affect the Option Premium?