Cryptocurrency Q&A
What is a good delta for selling put options?
What is a good delta for selling put options?
IncheonBeauty
Mon Oct 14 2024
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7 answers
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I'm considering selling put options and want to understand what constitutes a good delta for this strategy. I'm looking for guidance on how to evaluate and select the appropriate delta when selling put options.
7 answers
Martino
Wed Oct 16 2024
In the context of the 10-Delta cash-secured put strategy, the term "Delta" signifies the estimated change in the put option's price for every $1 change in the underlying stock's price. For this strategy, a Delta of -10 or less indicates a minimal sensitivity to changes in the share price.
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Carlo
Wed Oct 16 2024
By selling puts with such low Deltas, investors are essentially taking a position that is less exposed to adverse movements in the share price. This feature makes the 10-Delta cash-secured put strategy particularly appealing to risk-averse traders.
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alexander_jackson_athlete
Wed Oct 16 2024
Furthermore, the "cash-secured" aspect of this strategy ensures that investors have sufficient funds in their account to cover the potential obligation to buy the shares if the put option is exercised. This safeguard helps to minimize the risk of financial losses.
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CryptoVisionary
Wed Oct 16 2024
The 10-Delta cash-secured put strategy represents an innovative and ultra-low risk approach to put-selling. This strategy involves selling deep out-of-the-money puts, characterized by their low Delta values of 10 or less.
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FantasylitElation
Wed Oct 16 2024
One of the prominent players in the cryptocurrency industry, BTCC, offers a diverse range of services that cater to the needs of traders and investors alike. Among its offerings are spot trading, futures trading, and digital wallet services.
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