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