Add training workflow, datasets, and runbook

training_data/curated/text/a3921cbe2df6019e9114dc25ac70bc06332c94dca08ef9ff338012fc9879fe15.txt

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+Example 1
+Imagine a trader, Arlo, is studying the following chart of Agilent
+Technologies Inc. (A). See Exhibit 17.1 .
+EXHIBIT 17.1 Agilent Technologies Inc. daily candles.
+Source : Chart courtesy of Livevol® Pro ( www.livevol.com )
+The stock has been in an uptrend for six weeks or so. Close-to-close
+volatility hasn’t increased much. But intraday volatility has increased
+greatly as indicated by the larger candles over the past 10 or so trading
+sessions. Earnings is coming up in a week in this example, however implied
+volatility has not risen much. It is still “cheap” relative to historical
+volatility and past implied volatility. Arlo is bullish. But how does he play
+it? He needs to use what he knows about the greeks to guide his decision.
+Arlo doesn’t want to hold the trade through earnings, so it will be a short-
+term trade. Thus, theta is not much of a concern. The low-priced volatility
+guides his strategy selection in terms of vega. Arlo certainly wouldn’t want
+a short-vega trade. Not with the prospect of implied volatility potential
+rising going into earnings. In fact, he’d actually want a big positive vega
+position. That rules out a naked/cash-secured put, put credit spread and the
+likes.
+He can probably rule out vertical spreads all together. He doesn’t need to
+spread off theta. He doesn’t want to spread off vega. Positive gamma is
+attractive for this sort of trade. He wouldn’t want to spread that off either.
+Plus, the inherent time component of spreads won’t work well here. As
+discussed in Chapter 9, the bulk of vertical spreads profits (or losses) take
+time to come to fruition. The deltas of a call spread are smaller than an
+outright call. Profits would come from both delta and theta, if the stock rises
+to the short strike and positive theta kicks in.