Add training workflow, datasets, and runbook

training_data/curated/text/aa0815ea21a21cabe4c6cb780c0cad1372b3865af32f81ca66da45f2a6c2f803.txt

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+Gamma Scalping
+Intraday trading is seldom entirely in one direction. A stock may close
+higher or lower, even sharply higher or lower, on the day, but during the day
+there is usually not a steady incremental rise or fall in the stock price. A
+typical intraday stock chart has peaks and troughs all day long. Delta-
+neutral traders who have gamma don’t remain delta neutral as the
+underlying price changes, which inevitably it will. Delta-neutral trading is
+kind of a misnomer.
+In fact, it is gamma trading in which delta-neutral traders engage. For
+long-gamma traders, the position delta gets more positive as the underlying
+moves higher and more negative as the underlying moves lower. An upward
+move in the underlying increases positive deltas, resulting in exponentially
+increasing profits. But if the underlying price begins to retrace downward,
+the gain from deltas can be erased as quickly as it was racked up.
+To lock in delta gains, a trader can adjust the position to delta neutral
+again by selling short stock to cover long deltas. If the stock price declines
+after this adjustment, losses are curtailed thanks to the short stock. In fact,
+the delta will become negative as the underlying price falls, leading to
+growing profits. To lock in profits again, the trader buys stock to cover
+short deltas to once again become delta neutral.
+The net effect is a stock scalp. Positive gamma causes the delta-neutral
+trader to sell stock when the price rises and buy when the stock falls. This
+adds up to a true, realized profit. So positive gamma is a money-making
+machine, right? Not so fast. As in any business, the profits must be great
+enough to cover expenses. Theta is the daily cost of running this gamma-
+scalping business.
+For example, a trader, Harry, notices that the intraday price swings in a
+particular stock have been increasing. He takes a bullish position in realized
+volatility by buying 20 off the 40-strike calls, which have a 50 delta, and
+selling stock on a delta-neutral ratio.
+Buy 20 40-strike calls (50 delta) (long 1,000 deltas)
+Short 1,000 shares at $40 (short 1,000 deltas)