Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: manohar kanuri who wrote (1295)	1/19/2000 8:29:00 AM
From: Poet	Read Replies (1) \| Respond to of 8096

Hi Manohar, The only thing I can add to this talk of standard deviations is that 95%, not 99% of values fall within 1 SD. Now I'll go back to learning from you all. :)

To: manohar kanuri who wrote (1295)	1/19/2000 3:52:00 PM
From: Tom K.	Read Replies (1) \| Respond to 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