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Alias Born 12/05/2009

Re: None

Tuesday, 04/12/2011 4:45:52 PM

Tuesday, April 12, 2011 4:45:52 PM

Post# of 731
WebX99, plz double check your spreadsheet.

Line 7 for example: if both are undervalued, (yet the puts actual price is closer to T price), then the idea is that the puts are higher prob buys. My understanding of the concept is that this is a sentiment indicator. Aggressive buying drives the actual price up above T price. Aggressive selling drives price below T price, yet if both are being sold, the one that is being sold the least aggressively is the option to buy.

JT

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