Delta Exchange to simplify Bitcoin options trading with an automated product

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The Delta Exchange cryptocurrency derivatives platform has introduced a feature that it says will help generate passive income for its users through the use of automated calling options.

According to a press release shared with CoinDesk on Thursday, Deltas Enhanced Yield Product claims to simplify the process of bitcoin and ether options trading.

Options can be defined as financial derivatives based on the value of the underlying security such as a stock. Options allow traders to buy or sell the security at a specified strike price before or on a particular date.

Related: Market Wrap: Bitcoin Rally Despite Colder Inflation Data

The strike price in terms of the derivatives market is a fixed price at which the owner of the option can buy or sell the underlying asset, in this case bitcoin or ether.

Singapore-based companies said in the same way that exchange-traded funds simplify crypto exposure, people won’t need to learn or experiment with complex options strategies because they can choose from. a menu as they see fit.

This product aims to help investors participate in more complex options strategies without having to execute them, said Deltas CEO Pankaj Balani. It is focused on generating high returns with passive management.

If the price of an asset is greater than the strike price of the short option, a user’s bitcoin is automatically sold at the strike price, allowing the user to pocket the difference.

Related: Institutional Investors Return To Bitcoin Despite Possible Cryptocurrency Taxes In The United States

Conversely, when a user option contract expires and the price of bitcoin is lower than the strike price, the automated strategy does not sell the asset and the client keeps their bitcoin.

This allows its users to avoid high-risk situations and results in earnings, the exchange said.

As options markets continue to mature, we believe structured products will become a viable option for all traders, Balani said.

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