Get Option Alpha 100% FREE by simply connecting your TradeStation or Tradier Brokerage account! Learn more.
đź“Ł Alpha One Closes Tonight!
This is your last chance to join! 👉 Learn more.

Black-Scholes Model: Why Option Alpha Uses Historical Volatility to Calculate EV

This study examines the Black-Scholes-Merton model's flexibility in calculating expected value. We explore how this formula allows us to calculate probabilities and expected values in multiple ways, and we’ll compare the different methods to show why Option Alpha uses historical volatility.
No items found.
Trade with Conviction
Find an edge backtesting 0DTE and next day strategies using 1 minute data then leverage automation to execute your strategy better than humanly possible.
MacBook mockup