I just started using the scanner and now I know why there is confusion regarding in the money versus out of the money terminology. The scanner shows “ITM” on the sell side of a binary option with a strike price that is out of the money (the buy side shows OTM). I think this is the source of the misunderstanding. I guess in my mind I imagined that a particular binary option strike price was either in the money or out of the money depending on whether the underlying was above, at, or below the strike, but it seems that according to the scanner the sell side and buy side “moneyness” of a particular strike are opposite and listed separately. Hopefully everyone understands that when I said I want to sell the out of the moneys and buy the in the moneys what I meant was that I want to put time decay on my side, so I would sell strike prices that are above the market and buy strike prices that are below the market when I get a bearish or bullish signal.
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