Add training workflow, datasets, and runbook

training_data/curated/text/7bba8c8958ba71649fcae4d78c39a3a4e01446575af6b524c6cbad52dd243845.txt

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+464 Part IV: Additional Considerations 
+TABLE 28-1. 
+Implied volatilities, closing price, and volume. 
+Option 
+Option Price Volume 
+January 30 41/2 
+January 35 11/2 
+April 35 21/2 
+April 40 11/2 
+TABLE 28-2. 
+Volume weighting factors. 
+Option 
+January 30 
+January 35 
+April 35 
+April 40 
+Volume 
+50 
+90 
+55 
+5 
+50 
+90 
+55 
+~ 
+200 
+Implied 
+Volatility 
+.34 
+.28 
+.30 
+.38 
+Volume Weighting Factor 
+.25 (50/200) 
+.45 (90/200) 
+.275 (55/200) 
+.025 ( 5/200) 
+where x is the percentage distance between stock price and strike price and a is the 
+maximum percentage distance at which the modeler wants to give any weight at all 
+to the option's implied volatility. 
+Example: An investor decides that he wants to discard options from the weighting 
+criterion that have striking prices more than 25% from the current stock price. The 
+variable, a, would then be equal to .25. The weighting factors, with XYZ at 33, could 
+thus be computed as shown in Table 28-3. To combine the weighting factors for both 
+volume and distance from strike, the two factors are multiplied by the implied volatil­
+ity for that option. These products are summed up for all the options in question. 
+This sum is then divided by the products of the weighting factors, summed over all 
+the options in question. As a formula, this would read: 
+Implied _ I,(Volume factor x Distance factor x Implied volatility) 
+volatility - I,(Volume factor x Distance factor) 
+In our example, this would give an implied volatility for XYZ stock of 29.8% 
+(Table 28-4). Note that the implied volatility, .298, is not equal to any of the individ-