SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: manohar kanuri who wrote (1295)1/19/2000 3:52:00 PM
From: Tom K.  Read Replies (1) of 8096
 
...If volatility is 20% on a $50 stock your one std. dev. would be $20 (20% on both sides of the "mean" of 50, ie., 40 to 60)...

I believe your results are correct, however my understanding is that the one std. dev. would be $10 (20% of 50) on each side of the "mean". So the range for 2 std dev would be $20 on each side of the $50 mean to give a range of $30-70 with 96% probability of occurrence.

That's my limit of knowledge (and I peeked in the book).

Tom
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News