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
