Add training workflow, datasets, and runbook

training_data/curated/text/9d1fcd31600caa43ab22ae14b54a1ee44603786d3b86ef950f28745c9233110f.txt

@@ -0,0 +1,38 @@
+Chapter 39: Volatility Trading Techniques 819 
+ly not much different from the GARCH approach, which is considered to be highly 
+advanced. When one views the volatility chart, he is not looking for chart patterns like 
+technical analysts might do with stock charts: support, resistance, head-and-shoul­
+ders, flags, pennants, and so on. Rather, he is merely looking for the trend of volatil­
+ity to change. 
+This is a valid approach in the use of many indicators, particularly sentiment 
+indicators, that can go to extreme levels. By waiting for the trend to change, the user 
+is not subjecting himself to buying into the midst of a downtrend in volatility, nor sell­
+ing into the midst of a steep uptrend in volatility. 
+Example: Suppose a volatility trader has determined that the current level of implied 
+volatility for XYZ stock is in the 1st percentile of all past readings. Thus, the options 
+are as cheap as they've ever been. Perhaps, though, the overall market is experienc­
+ing a very dull period, or XYZ itself has been in a prolonged, tight trading range -
+either of which might cause implied volatility to decline steadily and substantially. 
+Having found these cheap options, he wants to buy volatility. However, he has no 
+guarantee that implied volatility won't continue to decline, even though it is already 
+as cheap as it's ever been. 
+If he follows the technique of waiting for a reversal in the trend of implied 
+volatility, then he would keep an eye on XYZ's implied volatility daily until it had at 
+least a modest increase, something to indicate that option buyers have become more 
+interested in XYZ's options. The chart in Figure 39-1 shows how this situation might 
+look. 
+There are a number of items marked on the chart, so it will be described in 
+detail. There are two graphs in Figure 39-1: The top line is the implied volatility 
+graph, while on the bottom is the stock price chart. The implied volatility chart shows 
+that, near the first ofJune, it made new all-time lows near 28% (i.e., it was in the 0th 
+percentile of implied volatility). Hence, one might have bought volatility at that 
+point. However, it is obvious that implied volatility was in a steep downtrend at that 
+time, so the volatility trader who reads the charts might have decided to wait for a 
+pop in volatility before buying. This turned out to be a judicious decision, because 
+the stock went nowhere for nearly another month and a half, all the while volatility 
+was dropping. At the right of the chart, implied volatility has dropped to nearly 20%. 
+The solid lines on the two graphs indicate the data that is known about the 
+implied volatility and price history of XYZ. The dotted lines indicate a scenario that 
+might unfold. If implied volatility were to jump ( and the stock price might jump, too), 
+then one might think that the trend of implied volatility was no longer down, and he 
+would then buy volatility.