Data required for option pricing models is difficult to estimate. This especially applies to the estimation of the variance in the expected return of an IT investment. In the case of a financial option, the variance is the variability of the underlying stock, which the option trader can obtain by option valuation.
From a practical standpoint the data required for options pricing models are just as difficult to develop as for an NPV analysis. You have to estimate the variance in the expected return on the IT investment. In the case of an options trader, the variance is the variability of the underlying stock. The options specialist obtains this information from a firm that clears trades; this firm calculates several measures of variance, or volatility, as it is known in options valuation.