Add training workflow, datasets, and runbook

training_data/curated/text/5aa61ee57e191afc1341342c49c9355a2135e91a5119e49d30bcfa8c449f3d42.txt

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+from the strike price in either direction, the higher the net value of the
+options.
+Above $70, the call has value. If the underlying is at $74.25 at expiration,
+the put will expire worthless, but the call will be worth 4.25—the price
+initially paid for the straddle. Above this break-even price, the trade is a
+winner, and the higher, the better. Below $70, the put has value. If the
+underlying is at $65.75 at expiration, the call expires, and the put is worth
+4.25. Below this breakeven, the straddle is a winner, and the lower, the
+better.
+Why It Works
+In this basic example, if the underlying is beyond either of the break-even
+points at expiration, the trade is a winner. The key to understanding this is
+the fact that at expiration, the loss on one option is limited—it can only fall
+to zero—but the profit potential on the other can be unlimited.
+In practice, most active traders will not hold a straddle until expiration.
+Even if the trade is not held to term, however, movement is still beneficial
+—in fact, it is more beneficial, because time decay will not have depleted
+all the extrinsic value of the options. Movement benefits the long straddle
+because of positive gamma. But movement is a race against the clock—a
+race against theta. Theta is the cost of trading the long straddle. Only pay it
+for as long as necessary. When the stock’s volatility appears poised to ebb,
+exit the trade.
+Exhibit 15.2 shows the P&(L) of the straddle both at expiration and at the
+time the trade was made.