The excerpt below is from page 46 of my new book A (NOT) So Random Walk On Wall Street.
Standard Deviation.
Regarding the price action of options. Within 1 standard deviation will occur 68.2% of all price action. Within 2 standard deviations will occur 95.4% of price action, and within 3 standard deviations will encompass 99.7% of all price action. Understanding standard deviation is important, because it allows you to anticipate when a change in price action is likely to occur.
I bought MSFT calls for 245, They went against me at first but I played the position and surprisingly in profit now
Lions: any idea why a Oracle and Apple options are floundering so much? In GM trades for them, just go down when markets going up.