Add training workflow, datasets, and runbook

training_data/curated/text/40af942f1b382f31e358b354dbcf1d98f3f0f4e8da2f35071de4b781f0164544.txt

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+880 Part VI: Measuring and Trading VolatiRty 
+attempting to create a spread that is neutral with respect to both gamma and delta, 
+he could attempt it in the following way: 
+Example: XYZ is 60. A spreader wants to establish a spread that is neutral with 
+respect to both gamma and delta, using the following prices: 
+Option 
+October 60 call 
+October 70 call 
+Delta 
+0.60 
+0.25 
+Gamma 
+0.050 
+0.025 
+The secret to determining a spread that is neutral with respect to both risk meas­
+ures is to neutralize gamma first, for delta can always be neutralized by taking an off­
+setting position in the underlying security, whether it be stock or futures. First, deter­
+mine a gamma neutral spread by dividing the two gammas: 
+Gamma neutral ratio= 0.050/0.025 = 2-to-l 
+So, buying one October 60 and selling two October 70 calls would be a gamma 
+neutral spread. Now, the position delta of that spread is computed: 
+Position 
+Long 1 October 60 call 
+Short 2 October 70 calls 
+Net position delta: 
+Delta 
+0.60 
+0.25 
+Position Delta 
++60 shares 
+-50 shares 
++ 10 shares 
+Hence, this gamma neutral ratio is making the position delta long by 10 shares 
+of stock for each l-by-2 spread that is established. For example, if one bought 100 
+October 60 calls and sold 200 October 70 calls, his position delta would be long 1,000 
+shares. 
+This position delta is easily neutralized by selling short 1,000 shares of the stock. 
+The resulting position is both gamma neutral and delta neutral: 
+Option Position Option Position 
+Position Delta Delta Gamma Gamma 
+Short 1,000 XYZ 1.00 -1,000 0 0 
+Long 1 00 October 60 calls 0.60 +6,000 0.050 + 500 
+Short 200 October 70 calls 0.25 -5,000 0.025 - 500 
+Net Position: 0 0