Add training workflow, datasets, and runbook

training_data/curated/text/76a0cf100e98ff05cb7d7da4f2fcaedb8ae99160405f079dc3283783d225cdb6.txt

@@ -0,0 +1,24 @@
+Appendix A: Choose Your Battles Wisely   • 281
+generally the volumes are light because the people in the option 
+markets generally are not willing to wait longer than 60 days for 
+their “investment” to work out. Because the time to expiration for 
+most option contracts is so short, the difference between the BSM’s 
+expected price based on a 5 percent risk-free rate and an expected 
+price based on a 10 percent equity return is small, so no one real-
+izes that it’s there (as seen on the first diagram).
+2. The market makers are generally able to hedge out what little ex-
+posure they have to the price appreciation of LEAPS. They don’t 
+care about the price of the underlying security, only about the size 
+of the bid-ask spread, and they always price the bid-ask spread on 
+LEAPS in as advantageous a way as they can. Also, the career of an 
+equity option trader on the desk of a broker-dealer can change a 
+great deal in a single year. As discussed in Part II, market makers 
+are not incentivized in such a way that they would ever care what 
+happened over the life of a LEAPS.
+Congratulations. After reading Part I of this book and this appendix, 
+you have a better understanding of the implications of option investing 
+for fundamental investors than most people working on Wall Street. 
+There are many more nuances to options that I discuss in Part III of this 
+book—especially regarding leverage and the sensitivity of options to input 
+changes—but for now, simply understanding how the BSM works puts you 
+at a great advantage over other market participants.