This measure doesn't account with the volatility σ of your fundamental asset. Unlike previous inputs, volatility is not directly observable from industry knowledge, but have to instead be computed in some design, principally utilizing ATM implied volatility in the Black–Scholes model. Dispersion is proportional to volatility, so standardizing by volatility https://expirationdate30630.blogkoo.com/an-unbiased-view-of-strike-price-46469318