The logarithmic method to calculate stock volatility, often referred to as the log-normal or log return method, is a common approach used in finance to measure the variability or risk associated with the stock price movement over time.

Volatility is a key parameter in pricing options and other derivatives. Higher volatility increases the premium of options due to the greater risk of price movement. Traders and quantitative analysts use volatility charts to identify opportunities and strategies in the options market.

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