Normal Distribution in Options Trading 📊 | Mean, Standard Deviation & Volatility Explained

Welcome to Ganesh Sharma, your go-to mentor for Options Trading, Finance & Market Mathematics 🚀

In this video, we’ll learn how the Normal Distribution Curve plays a crucial role in Options Trading — especially in understanding volatility, standard deviation, and probability of profit.

You’ve already learned what volatility is in the previous video.
Now, it’s time to explore how to calculate it practically using Mean and Standard Deviation.

🔹 What You’ll Learn in This Video:
✔️ What is a Normal Distribution Curve in the stock market
✔️ How to use Mean (μ) and Standard Deviation (σ) in option trading
✔️ Relationship between Volatility and Standard Deviation
✔️ Understanding High Volatility, Low Volatility, and Moderate Volatility setups
✔️ How to identify probability of profit (POP) using the normal curve
✔️ Real examples of how volatility affects option pricing and strike selection

📌 Why This Video is Important:
✔️90% of traders ignore statistics while trading — this video shows you the math behind profitable decisions.
✔️Learn to quantify risk and probability instead of guessing market direction.
✔️Essential for professional traders, finance students, and anyone mastering options mathematically.

✨ By the end of this video, you’ll understand how to use Mean & Standard Deviation to predict volatility zones and make better option strategy decisions.

📲 Subscribe to Ganesh Sharma for the complete Advanced Options Trading Series, where finance meets mathematics 💡

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Disclaimer: The information provided in this video is for educational purposes only and should not be taken as financial or investment advice. Ganesh Sharma is not a SEBI-registered/financial advisor, and any strategies, examples, or opinions discussed are purely illustrative. Trading and investing in stock markets, including options trading, carry risks of financial loss. Viewers are solely responsible for their own financial decisions. Always consult a certified financial advisor before investing or trading.