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The Institute for Options Research Free Optons Tools! Option Trading Tools! Books, videos and software for trading options! Your complete resource for options trading
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September 5, 2008 
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Why Understanding Volatility is so important to Options Traders:

The more a stock moves up and down, the better the chance that its option will pay off. Taking volatility into account can mean the difference between long-term success and steady losses.

Volatility = (high price - low price)/[(high price + low price)/2]. Or, you can use our Volatility Measurement Table.

Refer to Chapter Four in the On-Line Manual for more information.

Volatility Measurement Table

Historical Volatility Table


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