Add training workflow, datasets, and runbook

training_data/curated/text/2b9dd07246d25f7583e71af16352e62f7ba2dade533e14eb5767cbf30ad2e801.txt

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+Aside from the risks associated with early exercise implications, this
+position is just about totally flat. The near-1.00 delta on the long synthetic
+stock struck at 60 is offset by the near-negative-1.00 delta of the short
+synthetic struck at 70. The tiny gammas and thetas of both combos are
+brought closer to zero when they are spread against each another. Vega is
+zero. And the bullish interest rate sensitivity of the long combo is nearly all
+offset by the bearish interest sensitivity of the short combo. The stock can
+move, time can pass, volatility and interest can change, and there will be
+very little effect on the trader’s P&(L). The question is: Why would
+someone trade a box?
+Market makers accumulate positions in the process of buying bids and
+selling offers. But they want to eliminate risk. Ideally, they try to be flat the
+strike —meaning have an equal number of calls and puts at each strike
+price, whether through a conversion or a reversal. Often, they have a
+conversion at one strike and a reversal at another. The stock positions for
+these cancel each other out and the trader is left with only the four option
+legs—that is, a box. They can eliminate pin risk on both strikes by trading
+the box as a single trade to close all four legs. Another reason for trading a
+box has to do with capital.
+Borrowing and Lending Money
+The first thing to consider is how this spread is priced. Let’s look at another
+example of a box, the October 50–60 box.
+Long 1 October 60 call
+Short 1 October 60 put
+Short 1 October 70 call
+Long 1 October 70 put