Add training workflow, datasets, and runbook

training_data/curated/text/8bc9a673a0d0e37e2647ade7a3e009cc2f8e759bd85fb6ff04543e87cffe0de3.txt

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+Index 
+Stock index hedging strategies (continued) 
+hedging price-weighted index, 547,548 
+how many shares to buy, 547-552 
+institutional strategies, 556 
+POT system of NYSE, 555-556 
+profitability, 552-554 
+trade execution, 554-556 
+market baskets, 531-537 
+dividends, inverse correlation of to premium 
+value, 534-537 
+execution risk, 560 
+futures fair value, 533-534 
+risk, 560-561 
+tracking error, 538,561, 571-572 
+"mini-index," creating, 566-574 (see also Stock index 
+hedging strategies, index, simulating) 
+program trading, 537-547 
+adjusted volatility, 539 
+arbitrage approach, 537 
+hedging with index calls, 545-547 
+hedging with index puts, 543-545 
+hedging portfolios with index options, 541-543 
+market risk, removing, 538 
+portfolio hedge, 539-541 
+tracking error, 538, 561, 571-572 
+volatility versus Beta, 538-539 
+summary, 577-578 
+tracking error, trading, 57 4-577 
+collateral requirements, 577 
+Stock indices, 493-500 
+Stock options: 
+basic properties of, 1-35 
+definitions, 3-35 
+definition, 3-35 
+Stock price and option price, relationship between, 
+7-9 
+Stock prices, distribution of, 783-811 
+distribution, 789-795 
+"big" picture, 790 
+fat tails, 790-792, 810 
+inflection points, 792-793 
+normal, 780-795 
+risk of too conservative estimate of stock price 
+movement, 796 
+summary, 796-797 
+Elliott Wave theory, 796 
+expected return, 809-810 
+lognormal distribution, 783-789 
+options, pricing of, 798 
+probability of stock price movement, 798-809 
+Brownian motion, 806 
+calculation mechanisms, 803-805 
+cumulative density function (CDF), 806 
+delta, 805 
+"ever" probability calculator, 805-806 
+Monte Carlo analysis, 806, 807-809 
+probability calculator, 798-799 
+summary, 810-811 
+volatility, prediction of, 799-803 
+sigma, 783-784 
+volatility buyer's rule, 787-789 
+volatility, misconceptions about, 783-787 
+standard deviations, 783-786 
+what this means for option traders, 795-796 
+Stock splits, symbols for, 27 
+997 
+Stock trading and futures trading, difference between, 
+508,512 
+Stop order, 33 
+Stop-limit order, 33-34 
+Straddle: 
+buying, 282-288 (see also Put buying) 
+equivalent stock position follow-up, 312-313 
+follow-up action, 308-312 
+"legging out," 310 
+risk large, 308, 314 
+rolling up/down, 310 
+in volatility trading, 824, 825, 829 
+sale of, 302-320 
+covered, 302-305 
+uncovered, 305-307 
+selecting write, 307-308 
+selling, LEAPS and, 402-403 
+starting out with protection in place, 313-314 
+strangle (combination) writing, 315-320 
+credits, using, 320 
+definition, 315 
+deltas, 318-319 
+excess trading, avoiding, 319-320 
+margin requirements, 317-318 
+Straddle calendar spread, 348-350 (see also Spreads 
+combining calls and puts) 
+Straddle/strangle buying and selling, effects on of 
+implied volatility changes, 766-767 
+Strangle, 281 
+buying, 288-291 
+definition, 315 
+in volatility trading, 824, 825, 828-829 
+strangle (combination) writing, 315-320 (see also 
+Straddle) 
+Strategy, best, 932-937 
+investor as dominant force in determining strategy, 
+938 
+market attitude and equivalent positions, 932-934 
+mathematical ranking, 936-937 
+strategies to be avoided, 933 
+summary, 937 
+volatility trading, 932-933 
+Strategy summary, 943-944