Add training workflow, datasets, and runbook

training_data/curated/text/9e8a170c1c1a845cb03d915d455b7626249bfa8752fd8dfe17403a854cf6cfdd.txt

@@ -0,0 +1,31 @@
+Long OTM Call
+Kim can reduce her exposure to theta and vega by buying an OTM call. The
+trade-off here is that she also reduces her immediate delta exposure.
+Depending on how much Kim believes Disney will rally, this may or may
+not be a viable trade-off. Imagine that instead of buying one Disney March
+35 call, Kim buys one Disney March 37.50 call, for 0.20.
+There are a few observations to be made about this alternative position.
+First, the net premium, and therefore overall risk, is much lower, 0.20
+instead of 1.10. From an expiration standpoint, the breakeven at expiration
+is $37.70 (the strike price plus the call premium). Since Kim plans on
+exiting the position after about three weeks, the exact break-even point at
+the expiration of the contract is irrelevant. But the concept is the same: the
+stock needs to rise significantly. Exhibit 4.6 shows how Kim’s concerns
+translate into greeks.
+EXHIBIT 4.6 Greeks for Disney 35 and 37.50 calls.
+35 Call37.50 Call
+Delta 0.57 0.185
+Gamma0.1660.119
+Theta −0.013−0.007
+Vega 0.0480.032
+Rho 0.0230.007
+This table compares the ATM call with the OTM call. Kim can reduce her
+theta to half that of the ATM call position by purchasing an OTM. This is
+certainly a favorable difference. Her vega is lower with the 37.50 call, too.
+This may or may not be a favorable difference. That depends on Kim’s
+opinion of IV.
+On the surface, the disparity in delta appears to be a highly unfavorable
+trade-off. The delta of the 37.50 call is less than one third of the delta of the
+35 call, and the whole motive for entering into this trade is to trade
+direction! Although this strategy is very delta oriented, its core is more
+focused on gamma and theta.