How to use Theo Value?

Quote from a529612:

Theo value = short for theoritical value calculated using Black Scholes.
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I kind of suspected this is what you were asking rather than anything to do with the "mid of the posted bid/ask". I doubt you'll learn anything meaningful by pursuing this "theo value" garbage because doing so means you found a mechanical method for computing the "correct" current IV based on something other than current market price and that's a slippery road to go down. Whether current IV is correct or not is known only in hindsight and not something found in a mechanical computation. I know of at least two vendors who sell services and software to compute such values but I’m sure they earn more from vending it than from trading it.
 
Quote from Profitaker:

Can somebody tell me how to calculate future volatility please ? TIA
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Let me send you my closed form solution for put pricing while I am at it.
 
Quote from nickcage_77:

what exactly is a theo value?
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Theo is a guy who comes down to the exchange floor once a week and sets the fair values for all the options.:D

Theo=theoretical
 
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