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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (762)	2/23/2003 6:14:11 PM
From: tyc:>	Read Replies (1) \| Respond to of 1064

Thanks Dan. But please use the 50 day-2sd BB to allow use of the 2.245 annualisation factor, and also to approximate the features of a 3 month ATM option. I shall look forward to your findings. However Louis V is correct ... we must be on common ground on the meaning of "volatility". I have seen books talk about volatility as if it indicates a measure of ONE sd. However I'm confident that the implied volatility of options covers TWO standard deviations. For comparison we must use therefore use a 2sd BB.