Add training workflow, datasets, and runbook

training_data/curated/text/77bba2c7621155044f9047bec8197dc2e8bd3ee93cb181c7ba8b4b076dd5c20f.txt

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+270  •   The Intelligent Option Investor
+Short Investment Time Horizons
+When the scholars developing the BSM were researching financial 
+markets for the purpose of developing their model, the longest-tenor 
+options had expirations only a few months distant. Most market partic-
+ipants tended to trade in the front-month  contracts (i.e., the contracts 
+that will expire first), as is still mainly the case. Indeed, thinking back 
+to our preceding discussion about price randomness, over short time 
+horizons, it is very difficult to prove that asset price movements are not 
+random.
+As such, the BSM is almost custom designed to handle short time 
+horizons well.
+Perhaps not unsurprisingly, agents
+1 are happy to encourage clients to 
+trade options with short tenors because
+1. It gives them more opportunities per year to receive fees and com-
+missions from their clients. 
+2. They are mainly interested in reliably generating income on the 
+basis of the bid-ask spread, and bid-ask spreads differ on the basis 
+of liquidity, not time to expiration. 
+3. Shorter time frames offer fewer chances for unexpected price 
+movements in the underlying that the market makers have a hard 
+time hedging.
+In essence, a good option market maker is akin to a used car sales-
+man. He knows that he can buy at a low price and sell at a high one, so his 
+main interest is in getting as many customers to transact as possible. With 
+this perspective, the market maker is happy to use the BSM, which seems 
+to give reasonable enough option valuations over the time period about 
+which he most cares.
+In the case of short-term option valuations, the theory describes 
+reality accurately enough, and structural forces (such as wide bid-ask 
+spreads) make it hard to exploit mispricings if and when they occur. 
+To see an example of this, let’s take a look at what the BSM assumes is 
+a reasonable range of prices for a company with assumed 20 percent 
+volatility over a period of 30 days.