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webx99

04/12/11 8:02 PM

#507 RE: JT123 #506

"How are you using these numbers?"

Column N is =L7+M7 13.67
Column O is =L7/N7 67.15%
Column P is =M7/N7 32.85%
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Column O+P = 100.00%

I am not sure if columns O and P are true "probabilities" althought that is what Lerogee calls it.

In row 7, O and P columns simply say that 67.15% of column N is calls, 32.85% of column N is puts. Just a way to put perspective on the difference between the two.

If the columns are red, the option is undervalued due to selling. If the columns are green, they are overvalued due to buying.

Having said that, row 8 is overvalued. The prices are higher than the T value. Of the total overvaluation (column N), calls take up 69.68% of this overvaluation. This means there is more buying of calls than puts which should be bullish.

Did I answer your question? I apologize if I am not 100% sure what you are asking.

Thanks,
Rick