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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe

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To: tyc:> who wrote (746)2/23/2003 1:03:45 PM
From: Dominick  Read Replies (1) of 1064
 
No my calculator doesn't provide a 2SD range. But entering stock price 13.87, 20 strike, 22% volatility for 3 months and I get zero price for the calls and 6 1/4 for the put.

Hold it! Re-reading your posts again, would I be correct in saying, you're not really interested in the HV percent moves to determine over/under price options, but instead with the 2sd percent price movements in relation only to BB's due to the stock normally stays within those ranges?

If so,that's a new one for me! I'm so used to trading volatility in relationship to it's past ranges and over/under priced options because that's what I was taught. Hmmmmmmm.

I suppose using Metastock charts I could get a formula written,(by others), that would annualize those upper and lower bands.

Very Interesting,

Dominick
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