This measure doesn't account for that volatility σ of the underlying asset. As opposed to prior inputs, volatility is not directly observable from sector knowledge, but must instead be computed in some product, generally making use of ATM implied volatility within the Black–Scholes product. Dispersion is proportional to volatility, so https://optionstrategy80234.theblogfairy.com/26704817/everything-about-strike-price