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

To: tyc:> who wrote (791)	2/28/2003 11:00:26 AM
From: Ira Player	Read Replies (1) \| Respond to of 1064

I've been away for several days and missed the start of this exchange. Sorry for the comment, just as you are heading for the woodwork... An interesting, easy to calculate, number is a very basic signal to noise ratio. If a stock price is not trending, but is moving about some price point in a normal (log normal complicates it a bit, I'll just say normal) distribution, Volatility (in the BS use) will be the square root of 2 times the value you would get from calculating the SD from the mean over the period. If the ratio of Volitility/SD deviates from SQRT(2), there is trending within the sample period. Just another subtle wrinkle..... Ira