Add training workflow, datasets, and runbook

training_data/curated/text/5b1be73786a9eea135eefda3872d4040602f1536c373fa6bb820b540191f78f6.txt

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+FIGURE 18-1. 
+Straddle purchase. 
+C: 
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+-$500 
+Part Ill: Put Option Strategies 
+Stock Price at Expiration 
+chase is superior to the reverse hedge, however, and where listed puts exist on a stock, 
+the reverse hedge strategy becomes obsolete. The reasons that the straddle purchase 
+is superior are that dividends are not paid by the holder and that commission costs 
+are much smaller in the straddle situation. 
+REVERSE HEDGE WITH PUTS 
+A third strategy is equivalent to both the straddle purchase and the reverse hedge. 
+It consists of buying the underlying stock and buying two put options. If the stock 
+rises substantially in price, large profits will accrue, for the stock profit will more 
+than offset the fixed loss on the purchase of two put options. If the stock declines in 
+price by a large amount, profits will also be generated. In a decline, the profits gen­
+erated by 2 long puts will more than offset the loss on 100 shares of long stock. This 
+form of the straddle purchase has limited risk as well. The worst case would occur 
+if the stock were exactly at the striking price of the puts at their expiration date - the 
+puts would both expire worthless. The risk is limited, percentagevvise and dollar­
+wise, since the cost of two put options would normally be a relatively small per­
+centage of the total cost of buying the stock. Furthermore, the investor may receive 
+some dividends if the underlying stock is a dividend-paying stock. Buying stock and 
+buying two puts is superior to the reverse hedge strategy, but is still inferior to the 
+straddle purchase.