This measure doesn't account to the volatility σ on the underlying asset. As opposed to former inputs, volatility is indirectly observable from current market knowledge, but should rather be computed in certain design, largely utilizing ATM implied volatility within the Black–Scholes model. Dispersion is proportional to volatility, so standardizing by https://impliedvolatility68901.blogmazing.com/26667335/option-chain-an-overview