This paper studies how volatility estimation influences option pricing in Black Scholes model. First, we introduce the Black Scholes option pricing model. Second, we introduce three kinds of volatility estimation models. Then, we input the estimated volatilities estimated by these models into Black Scholes option pricing model to obtain theoretical call and put price. Then, we compare these theoretical option prices with the real world market option price data, and compare them with different approach to figure out which volatility estimate model is better.