This measure won't account for the volatility σ on the underlying asset. Compared with former inputs, volatility is indirectly observable from current market knowledge, but have to in its place be computed in a few design, primarily applying ATM implied volatility from the Black–Scholes model. Dispersion is proportional to volatility, https://optionstrategy83936.bloginder.com/27518246/the-smart-trick-of-expiration-date-that-no-one-is-discussing