Volatility And Standard Deviation:

Volatility analysis has been used by professional option traders for a very long time.
In fact may professional option traders use only this method to trade in options.
OptionCast uses statistical formulas allowing the option trader to plan a profitable strategy.

The hypothesis of an options value is based on volatility, OptionCast calculates volatility based on
your stock prices history for 20 days.
OptionCast uses advanced award winning statistical theories to then calculate probability.

Standard Deviation:

Volatility is actually defined as one standard deviation of the daily logarithmic price change for
one year. You take a time period (we have used 20 days for trading) for any particular stock,enter
the prices,or update them daily, and the program will calculate the volatility based on the
standard deviation of the logarithm of the daily price change.

It is these two concepts that succesfull traders have used to their advantage to trade options.
Since volatility is defined in terms of standard deviation, it allows us to measure price
movements, or swings, by using statistical formulas.