Add training workflow, datasets, and runbook

training_data/curated/text/76b8bd2c1581d3eb4742cb0fabb27e60588a02d59a171bf799f60f5474d83d4a.txt

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+Accepting Exposure   • 229
+×= ≈$19,500
+$5,000 13 .9 4: 1leverage
+Selling the $195/$220 call spread will generate $651 worth of pre-
+mium income and put at risk $2,500 worth of capital. Nothing can change 
+these two numbers—in this sense, the short-call spread has no leverage. 
+The 4:1 leverage figure merely means that the percentage  return will ap-
+pear nearly four times as large on a given allocation as a 1:1 allocation 
+would appear. The following table—assuming the sale of one contract of 
+the $195/$220 call spread—shows this in detail:
+Winning Case Losing Case
+Premium 
+Received 
+($)
+Target 
+Allocation 
+($) Leverage
+Stock 
+Move ($)
+Percent 
+Return on 
+Allocation
+Stock 
+Move 
+($)
+Dollar 
+Return
+Percent 
+Return on 
+Allocation
+651 20,000 1:1 –2 3.3 +25 –1,849 –9.2
+651 10,000 2:1 –2 6.5 +25 –1,849 –18.5
+651 5,000 4:1 –2 13.0 +25 –1,849 –37.0
+Note: The dollar return in the losing case is calculated as the loss of the $2,500 of margin 
+per contract less than the premium received of $651.
+Notice that the premium received never changes, nor does the worst-
+case return. Only the perception of the loss changes with the size of our 
+target allocation.
+Now that we have a sense of how to calculate what strategic leverage 
+we are using, let’s think about how to size the position and about how much 
+risk we are willing to take. When we are selling a call or call spread, we are 
+committing to sell a stock at the strike price. If we were actually selling the 
+stock at that price rather than committing to do so, where would we put 
+our stop loss—in other words, when would we close the position, assuming 
+that our valuation or our timing was not correct?
+Let’s say that for this stock, if the price rose to $250, you would be 
+willing to admit that you were wrong and would realize a loss of $55 per share, 
+or $5,500 per hundred shares. This figure—the $5,500 per hundred shares 
+you would be willing to lose in an unlevered short stock position—can be 
+used as a guide to select the size of your levered short-call spread.