holygrail to the stock market-win>90%

[webx99]

Re: "How do you use columns O and P?"

Also see Post #507.

Re: "the interpretation gets confusing when the options are both undervalued or one is undervalued and the other is overvalued"

Yes it does.

Let's take line 16. Calls are underpriced (red), Puts are overpriced (green).

If calls are underpriced, they are selling calls which is bearish.
If puts are overpriced, they are buying puts which is bearish.

When you think of it in those terms, it is pretty clear. In this case I would guess it doesn't matter what columns O an P say since they confirm each other.

When both columns L and M (calls and puts) are the same color,
that means both are overpriced or both are underpriced. Then you look to columns O and P to see which one is the most strongly oversold or overpriced.

Calls most strongly overpriced: bullish
Calls most strongly underpriced: bearish
Puts most strongly overpriced: bearish
Puts most srtongly underpriced: bullish

Link to spreadsheet: https://spreadsheets2.google.com/ccc?key=tIAljT2xmkKr23UVnDJUSWQ&authkey=CJCWi_0B#gid=0

Keep the questions coming! We all learn together.

P.S I'll be out of town Thurs and Friday and most likely not be able to update the spreadsheet those days.

Rick