Add training workflow, datasets, and runbook

training_data/curated/text/140637fd11c3c2032351dee69019ff6b2d78ee87209d99f745c59e83cedf10bf.txt

@@ -0,0 +1,34 @@
+Before the ex-date, the model valued the call at parity. Now it values the
+same call at $0.25 over parity (9.85 − [69.60 − 60]). Another way to look at
+this is that the time value of the call is now made up of the interest plus the
+put premium. Either way, that’s a gain of $0.25 on the call. That sounds
+good, but because the trader is short stock, if he hasn’t exercised, he will
+owe the $0.40 dividend—a net loss of $0.15. The new position will be
+Short 100 shares at $69.60
+Owe $0.40 dividend
+Long one 60 call at 9.85
+Short one 60 put at 0.05
+At the end of the trading day before the ex-date, this trader must exercise
+the call to capture the dividend. By doing so, he closes two legs of the trade
+—the call and the stock. The $10 call premium is forfeited, the stock that is
+short at $70 is bought at $60 (from the call exercise) for a $10 profit. The
+transaction leads to neither a profit nor a loss. The purpose of exercising is
+to avoid the $0.15 loss ($0.25 gain in call time value minus the $0.40 loss in
+dividends owed).
+The other way the trader could achieve the same ends is to sell the long
+call and buy in the short stock. This is tactically undesirable because the
+trader may have to sell the bid in the call and buy the offer in the stock.
+Furthermore, when legging a trade in this manner, there is the risk of
+slippage. If the call is sold first, the stock can move before the trader has a
+chance to buy it at the necessary price. It is generally better and less risky to
+exercise the call rather than leg out of the trade.
+In this transaction, the trader begins with a fairly flat position (short
+stock/long synthetic stock) and ends with a short put that is significantly
+out-of-the-money. For all intents and purposes, exercising the call in this
+trade is like synthetically selling the put. But at what price? In this case, it’s
+$0.15. This again is the cost benefit of saving $0.40 by avoiding the
+dividend obligation versus the $0.25 gain in call time value. Exercising the
+call is effectively like selling the put at 0.15 in this example. If the dividend
+is lower or the interest is higher, it may not be worth it to the trader to
+exercise the call to capture the dividend. How do traders know if their calls
+should be exercised?