Why Do Deep Out-of-the-Money Options on Bitcoin Often Have a Very Low Delta? ▴ Learn

Why Do Deep Out-of-the-Money Options on Bitcoin Often Have a Very Low Delta?

Deep Out-of-the-Money (OTM) options on Bitcoin have a very low Delta because the probability of the Bitcoin price reaching the strike price before expiration is statistically low. A low Delta, close to zero, means the option's price will change very little even if the Bitcoin price moves by a large amount.

This low sensitivity reflects the market's expectation that the option will likely expire worthless. Even in the volatile crypto market, extreme OTM strikes require massive price swings, making their sensitivity to current price small.

What Is the Probability of Exercise for a Deep Out-of-the-Money Put Option?

How Does Skew Affect the Pricing of Deep In-the-Money versus Deep Out-of-the-Money Options?

Define the Term “Deep out of the Money” for a Crypto Option

Why Are Out-of-the-Money Options Often Cheaper to Buy?