Add training workflow, datasets, and runbook

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+28  •   The Intelligent Option Investor
+5/18/2012
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+5/20/2013 249 499
+Date/Day Count
+Stock Price
+749 999
+BE 1
+BE 2
+RED
+RED
+There are a few important things to notice. First, notice how much shorter 
+the time frame is—we have moved from a 500-day time exposure to a two-week 
+exposure. In general, a floor trader has no idea of what the long-term value of a 
+stock should be, so he or she tries to protect himself or herself from large moves 
+by limiting his or her time exposure as much as possible. Second, look at how 
+little price exposure the trader is accepting! He or she is attempting to control his 
+or her price risk by making several simultaneous option trades (which, by the 
+way, puts the trader in a worse position in terms of breakeven points) that end up 
+canceling out most of his or her risk exposure to underlying moves of the stock.
+With this position, the trader is speculating that over the next short 
+time period, this stock’s market price will remain close to $50 per share; 
+what basis the trader has for this belief is beyond me. In my mind, winning 
+this sort of bet is no better than going to Atlantic City and betting that the 
+marble on the roulette wheel will land on red—completely random and 
+with only about a 50 percent chance of success.
+3
+It is amazing to me that, after reading books, subscribing to newslet-
+ters, and listening to TV pundits advocating positions such as this, inves-
+tors continue to have any interest in option investing whatsoever!
+With the preceding explanation, you have a good foundation in the 
+concept of options, their inherent directionality, and their peerless flex-
+ibility. We will revisit these themes again in Part III of this book when we 
+investigate the specifics of how to set up specific option investments.
+However, before we do that, any option investor must have a good 
+sense of how options are priced in the open market. We cover the topic of 
+option pricing in Chapter 2.