Add training workflow, datasets, and runbook

training_data/curated/text/436e6e4e39a6bf457be7ac38f6728d34505ed05cfc7482f218e795076a647970.txt

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+292  •   The Intelligent Option Investor
+From this equation, it follows that if
+PK + Int < Div
+your call option has a negative implied time value, and you should sell the 
+option in order to collect the dividend. 
+This is what is meant by dividend arbitrage . But it is hard to get the 
+flavor for this without seeing a real-life example of it. The following table 
+shows the closing prices for Oracle’s stock and options on January 9, 2014, 
+when they closed at $37.72. The options had an expiration of 373 days in 
+the future—as close as I could find to one year—the one-year risk-free rate 
+was 0.14 percent, and the company was expected to pay $0.24 worth of 
+dividends before the options expired.
+Calls Puts
+Bid Ask Delta Strike Bid Ask Delta
+19.55 19.85 0.94 18 0.08 0.13 −0.02
+17.60 17.80 0.94 20 0.13 0.15 −0.03
+14.65 14.85 0.92 23 0.25 0.28 −0.05
+12.75 12.95 0.91 25 0.36 0.39 −0.07
+10.00 10.25 0.86 28 0.66 0.69 −0.12
+8.30 8.60 0.81 30 0.97 1.00 −0.17
+6.70 6.95 0.76 32 1.40 1.43 −0.23
+4.70 4.80 0.65 35 2.33 2.37 −0.34
+3.55 3.65 0.56 37 3.15 3.25 −0.43
+2.22 2.26 0.42 40 4.80 4.90 −0.57
+1.55 1.59 0.33 42 6.15 6.25 −0.65
+0.87 0.90 0.22 45 8.25 8.65 −0.75
+0.31 0.34 0.10 50 12.65 13.05 −0.87
+In the theoretical option portfolio, we are short a put, so its value to 
+us is the amount we would have to pay if we tried to flatten the position by 
+buying it back—the ask price. Conversely, we are long a call, so its value to 
+us is the price we could sell it for—the bid price.
+Let’s use these data to figure out which calls we might want to exercise 
+early if a dividend payment was coming up.