Skip to main content

Why Is an ATM Option a Popular Choice for Speculators?

An At-The-Money (ATM) option is popular for speculators because it offers the highest Gamma, meaning the Delta changes fastest with the underlying price. This allows the option's price to increase rapidly if the underlying moves favorably, maximizing the impact of leverage.

What Are the Most Popular Platforms for Trading Cryptocurrency Options?
What Is the “Gamma” of an Option and Why Is It Highest for ATM Options?
In a Straddle Strategy, Why Are ATM Options Typically Chosen?
Why Is Liquidity Important for Speculators in the Derivatives Market?