Add training workflow, datasets, and runbook

training_data/curated/text/7776aa58653420c0a2ec72dabbd6249de826cc099f4c89e6f6f28b97b2247b8d.txt

@@ -0,0 +1,46 @@
+54 Part II: Call Option Strategies 
+than computing the interest charge as the debit times the interest rate multiplied by 
+the time to expiration, one should technically use: 
+Margin interest charges = Debit [(l + r/ -1] 
+where r is the interest rate per month and t the number of months to expiration. (It 
+would be incorrect to use days to expiration, since brokerage firms compute interest 
+monthly, not daily.) 
+In Example 2 of the preceding section, the debit was $10,910, the time was 6 
+months, and the annual interest rate was 10%. Using this more complex formula, the 
+margin interest charges would be $557, as opposed to the $545 charge computed 
+with the simpler formula. Thus, the difference is usually small, in terms of percent­
+age, and it is therefore comrrwn practice to use the simpler method. 
+SIZE OF THE POSITION 
+So far it has been assumed that the writer was purchasing 500 shares of XYZ and sell­
+ing 5 calls. This requires a relatively considerable investment for one position for the 
+individual investor. However, one should be aware that buying too few shares for cov­
+ered writing purposes can lower returns considerably. 
+Example: If an investor were to buy 100 shares of XYZ at 43 and sell l July 45 call 
+for 3, his return if exercised would drop from the 11.2% return (cash) that was com­
+puted earlier to a return of9.9% in a cash account. Table 2-13 verifies this statement. 
+Since commissions are less, on a per-share basis, when one buys more stock and 
+sells more calls, the returns will naturally be higher with a 500- or 1,000-share posi­
+tion than with a 100- or 200-share position. This difference can be rather dramatic, as 
+Tables 2-14 and 2-15 point out. Several interesting and worthwhile conclusions can be 
+drawn from these tables. The first and most obvious conclusion is that the rrwre shares 
+TABLE 2-13. 
+Cash investment vs. return. 
+Net Investment-Cash ( l 00 shares) 
+Stock cost $4,300 
+Plus commissions + 85 
+Less option premium 300 
+Plus option commissions + 25 
+Net investment $4,110 
+Return If Exercised-Cash ( l 00 shares) 
+Stock sale price 
+Stock commissions 
+Plus dividend 
+Less net investment 
+Net profit if exercised 
+$4,500 
+85 
++ 100 
+- 4 110 
+$ 405 
+Return if exercised = $4 05 = 9. 9% 
+$4,110