Add training workflow, datasets, and runbook

training_data/curated/text/2736b4fab5cc16971abf93ae2d50b971c5ccb4dc4c4f5edefb2d2561ad6ed1b2.txt

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+Chapter 40: Advanced Concepts 
+XYZ:90 
+Position 
+Sold 100 July 90 calls 
+Sold 1 00 July 90 puts 
+Option 
+Delto 
+0.56 
+0.43 
+Position 
+Delta 
+-5,600 
++4,300 
+873 
+1,300 shares 
+These examples demonstrate how quickly a large position, such as being short 
+100 straddles, can acquire a large delta as the stock moves even a small distance. 
+Extrapolating the moves is not completely correct, because the gamma changes as 
+the stock price changes, but it can give the trader some feel for how much his delta 
+will change. 
+It is often useful to calculate this information in advance, to some point in the 
+near future. Figure 40-10 depicts what the delta of this large short straddle position 
+will be, two weeks after it was first sold. The points on the horizontal axis are stock 
+prices. The quickness with which the neutrality of the position disappears is alarm­
+ing. A small move up to 93 - only one standard deviation - in two weeks makes the 
+overall position short the equivalent of about 3,300 shares of XYZ. Figure 40-10 real­
+ly shows nothing more than the effect that gamma is having on the position, but it is 
+presented in a form that may be preferable for some traders. 
+What this means is that the position is "fighting" the market: As the market goes 
+up, this position becomes shorter and shorter. That can be an unpleasant situation, 
+both from the point of view of creating unrealized losses as well as from a psycho­
+logical viewpoint. The position delta and gamma can be used to estimate the amount 
+of unrealized loss that will occur: Just how much can this position be expected to lose 
+if there is a quick move in the underlying stock? The answer is quickly obtained from 
+the delta and gamma: With the first point that XYZ moves, from 88 to 89, the posi­
+tion acts as if it is short 100 shares (the position delta), so it would lose $100. With 
+the next point that XYZ rises, from 89 to 90, the position will act as if it is short the 
+original 100 shares (the position delta), plus another 600 shares (the position 
+gamma). Hence, during that second point of movement by XYZ, the entire position 
+will act as if it is short 700 shares, and therefore lose another $700. Therefore, an 
+immediate 2-point jump in XYZ will cause an unrealized loss of $800 in the position. 
+Summarizing: 
+Loss, first point of stock movement = position delta 
+Loss, second point of stock movement = position delta + gamma 
+Total loss for 2 points of stock movement 
+= 2 x position delta + position gamma