If someone could please help with the following:
underlying is $100
Expiration Jan 14
Enter custom Annual Implied vola as 50%
then 1 stdev is 50% x $100 = $50.
Why is Tradeking IVolatility probability calculator showing
1) plus 1 stdev price as $148.44 and minus 1 stdev price as $52.25. Should not 1 stdev price range be from $50 to $150?
2) Plus/minus 1 stdev is $52.25 and $148.44?
Why is it showing the probability of touching these as 46.26% and 22.72%. Should not the probability of touching these prices be roughly equivalent, i.e. approx 68%/2 = 34%?
Thanks.
underlying is $100
Expiration Jan 14
Enter custom Annual Implied vola as 50%
then 1 stdev is 50% x $100 = $50.
Why is Tradeking IVolatility probability calculator showing
1) plus 1 stdev price as $148.44 and minus 1 stdev price as $52.25. Should not 1 stdev price range be from $50 to $150?
2) Plus/minus 1 stdev is $52.25 and $148.44?
Why is it showing the probability of touching these as 46.26% and 22.72%. Should not the probability of touching these prices be roughly equivalent, i.e. approx 68%/2 = 34%?
Thanks.