Add training workflow, datasets, and runbook

training_data/curated/text/9b0536d8773117611cd009ab4a29787778212ee108ee67e9e9d31e37369ed37f.txt

@@ -0,0 +1,35 @@
+Gaining Exposure 	 	•	 207
+that if the option expires when the stock price is at either edge of my valu-
+ation range, it is far enough in-the-money to pay me back for both legs of 
+the investment (plus an attractive return).
+Portfolio Management
+As mentioned earlier, this is naturally a more speculative style of option 
+investment, and it may well be more beneficial to close the successful leg of 
+the strategy before expiration than to hold the position to expiration. Com-
+pared with the next strategy presented here (the straddle), the strangle ac-
+tually generates worse returns if held to expiration, so if you are happy with 
+your returns midway through the investment, you should close the posi-
+tion rather than waiting for expiration. The exception to this rule is that if 
+news comes out that convinces you that the value of the firm is materially 
+higher or lower than what you had originally forecast and uncertainty in 
+the other direction has been removed, you should assess the possibility of 
+making a more substantial investment in the company.
+One common problem with investors—even experienced and sophis-
+ticated ones—is that they check the past price history of a stock and decide 
+whether the stock has “more room” to move in a particular direction. The 
+most important two things to know when considering an investment are its 
+value and the uncertainty surrounding that value. Whether the stock was 
+cheaper three years ago or much more expensive does not matter—these are 
+backward-looking measures, and you cannot invest with a rear-view mirror.
+One final note regarding this strategy is what to do with the unused 
+leg. If the stock moves up strongly and you take profits on the call, what 
+should you do with the put, in other words. Unfortunately, the unused leg is 
+almost always worthless, and often it will cost more than it’s worth to close 
+it. I usually keep this leg open because you never know what may happen, 
+and perhaps before it expires, you will be able to close it at a better price.
+This is a speculative strategy—a bit of spice or an after-dinner mint 
+in the meal of investing. Don’t expect to get rich using it (if you do get rich 
+using it, it means that you were lucky because you would have had to have 
+used a lot of leverage in the process), but you may be pleasantly surprised 
+with the boost you get from these every once in a while.
+Let’s now turn briefly to a related strategy—the straddle.