import math
# Function to calculate expected move
def calculate_expected_move(stock_price, implied_volatility, days_to_expiration):
# Calculate expected move using the formula
expected_move = stock_price * implied_volatility * math.sqrt(days_to_expiration / 250)
return expected_move
# Input values
stock_price = 361.62 # Current price of TSLA (adjust accordingly)
implied_volatility = 0.5173 # Implied volatility (60% example)
days_to_expiration = 5 # Days until expiration (for example, 5 days until February 14)
# Calculate the expected move
expected_move = calculate_expected_move(stock_price, implied_volatility, days_to_expiration)
# Calculate the price range
lower_bound = stock_price - expected_move
upper_bound = stock_price + expected_move
print(f"Current stock price: ${stock_price}")
print(f"Implied volatility: {implied_volatility*100}%")
print(f"Days to expiration: {days_to_expiration} days")
print(f"Expected move: ${expected_move:.2f}")
print(f"Predicted price range: ${lower_bound:.2f} to ${upper_bound:.2f}")
