This measure won't account for your volatility σ from the underlying asset. As opposed to prior inputs, volatility is circuitously observable from sector information, but need to instead be computed in some design, mostly making use of ATM implied volatility in the Black–Scholes design. Dispersion is proportional to volatility, so https://claytonptwbb.onesmablog.com/how-much-you-need-to-expect-you-ll-pay-for-a-good-premium-67155314