Even as the crypto winter seems never to end, intelligent crypto traders have found a way to engage in their interests while remaining profitable. The Bitcoin options market is a perfect way for traders to ensure that they profit from the price movements, regardless of whether it’s in a bull or bear market.
That being said, getting into Bitcoin options trading, and taking a look at the Bitcoin Option chain may be a little too overwhelming if you’re just starting out.
In this article, we will take you through some of the important things that you need to know about the Bitcoin Options chain before you start trading.
What is a Bitcoin Options Chain?
Options chains, also called Option Matrices, are a detailed listing of every single available contract of a given asset. Regardless of whether the options are puts or calls, it gives a list of all available options contracts including details like strike price, maturity, volume, and pricing information, within a given period.
As you would imagine, a Bitcoin Options Chain is an option chain with Bitcoin as the underlying asset. Should you want to see what a Btc Options chain looks like, here’s a live example, as it is currently listed on the Delta Exchange.
In this list, you have the option to take a look at a list of all options contracts that have the maturity period that lies on the same day, the next day, within one week, two weeks, three weeks, a month, and 6 months from the date you’re using this link.
If you’re thinking of investing in bitcoin, you might want to consider the option chain. The option chain is a series of strategies that you can use to increase your chances of making a successful investment. By using the option chain, you can ensure that you’re buying and selling bitcoin at the right time – which can lead to big profits. And the best part is that you can use the option chain with any cryptocurrency – so whether you’re investing in bitcoin, Ethereum, or any other digital asset, the option chain can help you make smart decisions. So if you’re thinking of investing in bitcoin or any other cryptocurrency, the option chain is a great way to increase your chances of success.
Different Elements in the Bitcoin Options Chain
Typically, in a Bitcoin Options Chain, you’ll have the following elements
24Hr Vol. – Denotes in fiat currency, the trading volume of that particular options contract in the last 24 hours.
24Hr Change – Denotes in percentage the change in the price of that particular options contract over the last 24 hours.
Last – Denotes the price at which this contract was last traded.
Bid Qty. – Denotes the quantity of Bitcoin the bidder is asking for at the given price
Bid Price – Denotes the price at which the bidders are ready to purchase the options contract.
Mark Price – Denotes the price at which an open contract will be marked for the computation of unrealized PnL and liquidation
Ask Price – Denotes the price at which the holder of the options contract is ready to sell the options contract at
Ask Qty – Denotes the quantity of Bitcoin the seller is willing to set aside for the given price.
Open Interest – Denotes the total number of open bitcoin options that haven’t been settled
Delta – Denotes the change in the options contract price/premium paid due to the change in the inherent value of the underlying asset over the period of time.
Strike Price- The price at which the underlying asset will be traded at the date of maturity.
Put/Call – This information, usually on the top left, and the top right of the table denotes whether the particular series of options that you’re looking at are put/call options. Put options give the holder the right, but not the obligation to, sell the underlying asset, in this case, Bitcoin, at the agreed-upon price, at expiry. Call options, on the other hand, give the holder the right, but not the obligation to buy Bitcoin at the agreed-upon price, at expiry.
What Bitcoin Options Chain Allows You To Do
Bitcoin Options Chain allows you to have all the available information about the options market of the underlying asset that you’re dealing with in a single dashboard. For instance, you’ll be able to see whether an options contract is at the money, in the money, or out of money at a cursory glance. You can also see the different price points at which the options of different strike prices are trading, coupled with some technical analysis, you will be able to make informed decisions and hopefully profitable trades, even this Crypto winter.
Should you have more queries, why don’t you write to us at Delta Exchange, or reach us on our socials? We’ll be happy to help you take your first steps in your Bitcoin Options Trading Journey!