Add training workflow, datasets, and runbook

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O.,ter 3: Call Buying
TABLE 3-5.
Original and spread positions compared.
Stock Price Long Call
at Expiration Result
25 -$300
30 - 300
33 - 300
35 - 300
38 0
40 + 200
45 + 700
FIGURE 3-2.
Companion: original call purchase vs. spread.
§
~ +$200
·5..
~
al
tJ)
.3
0
:1:
e
c.. -$300
Stock Price at Expiration
Spread
Result
-$300
- 300
0
+ 200
+ 200
+ 200
+ 200
115
With these prices, a 1-point debit would be required to roll down. That is, selling 2
October 35 calls would bring in $300 ($150 each), but the cost of buying the October
30 call is $400. Thus, the transaction would have to be done at a cost of $100, plus
commissions. With these prices, the break-even point after rolling down would be 34,
still well below the original break-even price of 38. The risk has now been increased
by the additional 1 point spent to roll down. If XYZ should drop below 30 at October
expiration, the investor would have a total loss of 4 points plus commissions. The
maximum loss with the original long October 35 call was limited to 3 points plus a
smaller amount of commissions. Finally, the maximum amount of money that the