Add training workflow, datasets, and runbook

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+OPTION TrAdINg STrATegIeS
+is that the profit/loss profile for strategies that include a net long options position will shift 
+upward as the time reference point is further removed from the expiration date. The reason is 
+that at expiration, options have only intrinsic value; at points prior to expiration, options also 
+have time value. Thus, prior to expiration, the holder of an option could liquidate his position at 
+a price above its intrinsic value—the liquidation value assumed in the profit/loss profile. Simi-
+larly, the profit/loss profile would be shifted downward for the option writer (seller) at points 
+in time prior to expiration. This is true since at such earlier junctures, the option writer would 
+have to pay not only the intrinsic value but also the time value if he wanted to cover his position.
+ 4. It is important to keep in mind that a single option is equivalent to a smaller position size than a 
+single futures contract (see section entitled “
+delta—the Neutral Hedge ratio” in the previous 
+chapter). Similarly, an out-of-the-money option is equivalent to a smaller position size than an 
+in-the-money option. Thus, the trader should also consider the profit/loss profiles consisting 
+of various multiples of each strategy. In any case, the preference of one strategy over another 
+should be based entirely on the relationship between reward and risk rather than on the absolute 
+profit (loss) levels. In other words, strategy preferences should be totally independent of posi-
+tion size.
+ 5. Trading strategies are evaluated strictly from the perspective of the speculator. Hedging applica-
+tions of option trading are discussed separately at the end of this chapter.
+ ■ Profit/Loss Profiles for Key Trading Strategies
+Strategy 1: Long Futures
+exAMPle. Buy August gold futures at $1,200. (See Table 35.1 and Figure 35.1.)
+Comment. The simple long position in futures does not require much explanation and is included 
+primarily for purposes of comparison to other less familiar trading strategies. As every trader knows, 
+the long futures position is appropriate when one expects a significant price advance. However, as will 
+tabLe 35.1 profit/Loss Calculations: Long Futures
+Futures price at expiration ($/oz) Futures price Change ($/oz) profit/Loss on position
+1,000 –200 –$20,000
+1,050 –150 –$15,000
+1,100 –100 –$10,000
+1,150 –50 –$5,000
+1,200 0 $0
+1,250 50 $5,000
+1,300 100 $10,000
+1,350 150 $15,000
+1,400 200 $20,000