2) Used a Formula VIX Value / Square root of Time Period
3) Change Timeframe input accordingly 1 Year = 1, Monthly = 12, Weekly = 52, Daily = 365
4) based point 2 formula with 1 standard deviation it creates upper & lower range bands
5) This is generally used for option selling by big traders they go and sell above the band strikes
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.