The Rule of 16 – Deriving Daily Meaning from an Annual Volatility Metric

The Rule of 16 – Deriving Daily Meaning from an Annual Volatility Metric

Ever wondered how traders take annual implied volatility and make it meaningful for day-to-day price movement? Join OIC instructor and former options trader Mat Cashman for a webinar focused on the Rule of 16, a key concept that helps traders translate annual variance into daily expectations.

This session will cover:

· Understanding the Rule of 16 and how it simplifies volatility math

· How to calculate daily standard deviation from implied volatility

· Breaking down annual variance into daily, weekly, and monthly insights

· Applying daily movement forecasts to real-world trades

· Evaluating outsized moves with a standard deviation framework

· Hands-on examples to practice your own calculations