Finding Mispriced Options    • 159
Plugging in the 39/46 for Mueller Water, I would get the following:
6/21/201612/24/20156/27/201512/29/20147/2/20141/3/20147/7/20131/8/20137/12/2012
Date
Mueller Water (MWA)
Price per Share
25
20
15
5
10
-
Y ou can see with Mueller Water just how big a 7 percentage point dif-
ference can be for the bid and ask implied volatilities in terms of projected 
outcomes. The 39 percent bid implied volatility generates an upper range 
at just around $15; the 46 percent ask implied volatility generates an upper 
range that is 20 percent or so higher than that!
Overlay an Intelligent Valuation Range on the BSM Cone
This is simple and exactly the same for a big company or a small one, 
so I’ll just keep going with the Oracle example. After having done a full 
valuation as shown in the exam valuation of Oracle on the IOI website, 
you’ve got a best-case valuation, a worst-case valuation, and probably 
an idea about what a likely valuation is. Y ou simply draw those numbers 
onto a chart like this: