Algorithmic Options Trading on Delta Exchange

Options add a new dimension to delta exchange algo trading. Unlike futures, options have Greeks—sensitivity measures that change as market conditions evolve. Building an automated crypto trading options strategy requires understanding these dynamics.

Querying Options Contracts

Use the GET /v2/products endpoint and filter by contract_type = "put_options" or "call_options". You'll get a list of available strikes and expiries for BTC and ETH.

The Greeks

• Delta: Sensitivity to underlying price change. A delta of 0.5 means the option moves $0.50 for every $1 in the underlying.
• Theta: Time decay. Options lose value every day they are held.
• Vega: Sensitivity to implied volatility changes.

Delta-Neutral Strategy

A delta-neutral portfolio has a net delta of zero. Your crypto trading bot can sell a straddle (sell a call and put at the same strike) and hedge the delta with a futures position. This is a classic volatility-selling strategy that profits from time decay.