Add training workflow, datasets, and runbook

training_data/curated/text/2fc4bc0fe28ca47e206f21f38000896a886983b99ecf4981ff84e245bb940dc4.txt

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+OPTION TrAdINg STrATegIeS
+strategies. One critical point that must be emphasized regarding option spreads is that these 
+strategies are normally subject to a major disadvantage: the transaction costs (commissions plus 
+cumulative bid/asked spreads) for these trades are relatively large compared to the profit poten-
+tial. This consideration means that the option spread trader must be right a large percentage of 
+the time if he is to come out ahead of the game. The importance of this point cannot be overem -
+phasized. In short, as a generalization, other option strategies will usually offer better trading 
+opportunities.
+Multiunit Strategies
+The profit/loss profile can also be used to analyze multiple-unit option strategies. In fact, multiple-
+unit option positions may often provide the more appropriate strategy for purposes of comparison. 
+For example, as previously detailed, a long futures position is more volatile than a long or short call 
+position. In fact, for small price changes, each $1 change in a futures price will only result in approxi-
+mately a $0.50 change in the call price (the delta value for an at-the-money call is approximately 
+equal to 0.5). As a result, in considering the alternatives of buying futures and buying calls, it probably 
+makes more sense to compare the long futures position to two long calls (see Table 35.22) as opposed 
+to one long call.
+Figure 35.22 compares the strategies of long futures versus long two calls, which at the time of 
+initiation are approximately equivalent in terms of delta values. Note this comparison indicates that 
+the long futures position is preferable if prices change only moderately, but that the long two-call 
+position will gain more if prices rise sharply, and lose less if prices decline sharply. In contrast, the 
+comparison between long futures and a long one-call position would indicate that futures provide 
+the better strategy in the event of a price advance of any magnitude (see Figure 35.3d). For most 
+purposes, the comparison employing two long calls will be more meaningful because it comes much 
+closer to matching the risk level implicit in the long futures position.
+tabLe 35.22 profit/Loss Calculations: Long two at-the-Money Calls
+(1) (2) (3) (4) (5)
+Futures price at 
+expiration ($/oz)
+premium of august 
+$1,200 Call ($/oz)
+$ amount of total 
+premium paid
+Value of 2 Calls 
+at expiration
+profit/Loss on 
+position [(4) − (3)]
+1,000 38.8 $7,760 $0 –$7,760
+1,050 38.8 $7,760 $0 –$7,760
+1,100 38.8 $7,760 $0 –$7,760
+1,150 38.8 $7,760 $0 –$7,760
+1,200 38.8 $7,760 $0 –$7,760
+1,250 38.8 $7,760 $10,000 $2,240
+1,300 38.8 $7,760 $20,000 $12,240
+1,350 38.8 $7,760 $30,000 $22,240
+1,400 38.8 $7,760 $40,000 $32,240