Add training workflow, datasets, and runbook

training_data/curated/text/1cefd30d4175f0c6238f603efe85c6ddecb662009120e7d829e437a7be70bb93.txt

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+452 Part IV: Additional Considerations 
+the fundamentals of the company, it is expected that the remaining stock will sell for 
+approximately $40 per share. Thus, the average share of XYZ is worth 55 if the ten­
+der offer is completed ( one-half can be sold at 70, and the other half will be worth 
+40). XYZ stock might sell for $52 or $53 per share until the tender is completed. On 
+the day after the tender offer expires, XYZ stock will drop immediately to the $40 per 
+share level. 
+There are two ways to make money in this situation. One is to buy XYZ at the 
+current price, say 52, and tender it. The remaining portion would be sold at the lower 
+price, say 40, when XYZ reopened after the tender expired. This method would yield 
+a profit of $3 per share if exactly 50% of the shares are accepted at 70 in the tender 
+offer. In reality, a slightly higher percentage of shares is usually accepted, because a 
+few people make mistakes and don't tender. Thus, one's average net price tnight be 
+$56 per share, for a $4 profit from this method. The risk in this situation is that XYZ 
+opens substantially below 40 after the tender at 70 is completed. 
+Theoretically, the other way to trade this tender off er might be to sell XYZ short 
+at 52 and cover it at 40 when it reopens after the tender offer expires. Unfortunately, 
+this method cannot be effected because there will not be any XYZ stock to borrow in 
+order to sell it short. All owners will tender the stock rather than loan it to arbi­
+trageurs. Arbitrageurs understand this, and they also understand the risk they take if 
+they try to short stock at the last minute: They might be forced to buy back the stock 
+for cash, or they may be forced to give the equivalent of $70 per share for half the 
+stock to the person who bought the stock from them. For some reason, many indi­
+vidual investors believe that they can "get away" with this strategy. They short stock, 
+figuring that their brokerage firm will find some way to borrow it for them. 
+Unfortunately, this usually costs the customer a lot of money. 
+The use of calls does not provide a more viable way of attempting to capitalize 
+on the drop of XYZ from 52 to 40. In-the-money call options on XYZ will normally 
+be selling at parity just before the tender offer expires. If one sells the call as a sub­
+stitute for the short sale, he will probably receive an assignment notice on the day 
+after the tender offer expires, and therefore find himself with the same problems the 
+short seller has. 
+The only safe way to play for this drop is to buy puts on XYZ. These puts will be 
+very expensive. In fact, with XY"L at 52 before the tender offer expires, if the con­
+sensus opinion is that XYZ will trade at 40 after the offer expires, then puts with a 50 
+strike will sell for at least $10. This large price reflects the expected drop in price of 
+XYZ. Thus, it is not beneficial to buy these puts as downside speculation unless one 
+expects the stock to drop farther than to the $40 level. There is, however, an oppor­
+tunity for arbitrage by buying XYZ stock and also buying the expensive puts.