The Rule of 16 Formula
See the Rule of 16 applied from start to finish. OIC instructor Mat Cashman walks through a $100 stock with a 20% implied volatility to break down an annual variance into a daily expected move.
0:16 Big Block of Annual Variance
0:22 Dividing Variance into Daily Chunks
0:33 Daily Standard Deviation Formula
1:06 Slicing into Daily Expectation
Register to view the complete Rule of 16 – Deriving Daily Meaning from an Annual Volatility Metric webinar: https://bit.ly/4vhlXg9.
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