Add training workflow, datasets, and runbook

training_data/curated/text/19be3ef043555c0579fe896eaeee76c7e881e6f58bf1d0fec32938a05ae8fc92.txt

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+718 Part V: Index Options and Futures 
+example, the conservative action would be to sell three heating oil futures against the 
+heating oil calls. 
+The more aggressive course is to hedge the in-the-money option with the future 
+underlying the other side of the intermarket spread. In the above example, that 
+would entail selling the unleaded gasoline futures against the heating oil calls. 
+Suppose that the strategist in the previous example decides to take the conser­
+vative action, and he therefore shorts three heating oil futures at .7100, the current 
+price. This action preserves large profit potential in either direction. It is better than 
+selling out-of-the-money options against his current position. 
+He would consider removing the hedge if futures prices dropped, perhaps 
+when the puts returned to an in-the-money status with a put delta of at least -0. 75 
+or so. At that point, the position would be at its original status, more or less, except 
+for the fact that he would have taken a nice profit in the three futures that were sold 
+and covered. 
+Epilogue. The above examples are taken from actual price movements. In reality, 
+the futures fell back, not only to their original price, but far below it. The funda­
+mental reason for this reversal was that the weather was warm, hurting demand for 
+heating oil, and gasoline supplies were low. By the option expiration in December, 
+the following prices existed: 
+January heating oil futures: .5200 
+January unleaded gas futures: .5200 
+Not only had the futures prices virtually crashed, but the intermarket spread 
+had been decimated as well. The spread had fallen to zero! It had never reached any­
+thing near the 12-cent potential that was envisioned. Any spreader who had estab­
+lished this spread with futures would almost certainly have lost money; he probably 
+would not have held it until it reached this lowly level, but there was never much 
+opportunity to get out at a profit. 
+The strategist who established the spread with options, however, most certain­
+ly would have made money. One could safely assume that he covered the three 
+futures sold in the previous example at a nice profit, possibly 7 points or so. One 
+could also assume that as the puts became in-the-money options, he established a 
+similar hedge and bought three unleaded gasoline futures when the EFP reached 
+-3.00. This probably occurred with unleaded gasoline futures around .5700-5 cents 
+in the money. 
+Assuming that these were the trades, the following table shows the profits and 
+losses.