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Standard Deviation

1 Standard Deviation

  • One standard deviation of a stock covers about 68.2% of outcomes in a distribution of occurrences based on current implied volatility

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           *The stock should trade within the yellow lines 68% of the time*

2 Standard Deviations

  • Two standard deviations of a stock covers about 95.4% of outcomes in a distribution of occurrences based on current implied volatility

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            *The stock should trade within the yellow lines 95% of the time*

3 Standard Deviations

  • Three standard deviations of a stock covers about 99.7% of outcomes in a distribution of occurrences based on current implied volatility

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      *The stock should trade within the yellow lines 99% of the time*

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