Description: This volatility calculator can be used to establish the volatility of a publicly traded stock based on the inputs you provide. Use this spreadsheet to price options. The historical prices are input on one tab (the download contains an example from yahoo.finance), and then complete the remaining inputs shown to the in the picture above and the voila volatility is calculated.
Volatility is a critical input utilized in the Black-Scholes model, a common model for pricing options. This calculator is what is referred to as a Historic Volatility Calculator, because it is solely dependent on historical prices of a company's stock.
The calculator has been specifically setup to work with the historical prices you can download from yahoo.fiance. If you download historical prices from another website (which is perfectly fine) ensure that the stock price you choose to use is included in either the "Close" or "Adj Close" columns. The inputs shown above allow you to choose either the "Close" or "Adj Close" columns for your calculation. For additional flexibility you can select the calculation be performed Weekly or Monthly -- again, just ensure the historical date is consistent with the option you choose.
Note, be sure to delete the example information before beginning.
Disclaimer - the Spreadsheetshoppe.com does not take any responsibility for trades made using the information on this site. The information found here is being provided for educational / informational purposes only, any actions taken as a result of this information is strictly the responsibility of the user. Trading financial instruments of any kind, including but not limited to, options, futures, and stocks carry significant potential risk. No representation is made that by using the information on this site will or are likely to achieve profits or losses indicated.
This website, its owners, its associates and/or its representatives are not registered as securities broker-dealers or investment advisors with any state securities regulatory authority. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest with or without seeking advice from such an advisor or entity, then any consequences resulting from your investments are your sole responsibility.
Basically, use common sense and understand that the accuracy or validity of the information / calculations found on this site should not be construed as a recommendation to purchase or sell any type of security, or to provide investment advice.
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* Note, utilizing the features of this excel template requires Microsoft Excel® 2007 or later - this template/tool will work in 2003; however, the colors may be different than shown in the picture(s).