Add training workflow, datasets, and runbook

training_data/curated/text/ab035137623d7ae6964bdaa424b74e16f3ab7f44f32f6d9ebf02e86bfa6551e6.txt

@@ -0,0 +1,53 @@
+515
+OPTION TrAdINg STrATegIeS
+Strategy 7: Long Straddle (Long Call + Long put)
+example. Buy August $1,200 gold futures call at a premium of $38.80/oz ($3,880) and simultane-
+ously buy an August $1,200 gold futures put at a premium of $38.70/oz ($3,870). (See Table 35.7 
+and Figure 35.7.)
+Comment. The long straddle position is a volatility bet. The buyer of a straddle does not have 
+any opinion regarding the probable price direction; he merely believes that option premiums 
+are underpriced relative to the potential market volatility. Andrew T obias once offered a some -
+what more cynical perspective of this type of trade
+1: “Indeed, if you haven’t any idea of which 
+way the [market] is headed but feel it is headed someplace, you can buy both a put and a call 
+on it. That’s called a straddle and involves enough commissions to keep your broker smiling 
+all week.”
+As can be seen in Figure 35.7, the long straddle position will be unprofitable for a wide price 
+range centered at the current price. Since this region represents the range of the most probable price 
+outcomes, the long straddle position has a large probability of loss. In return for accepting a large 
+probability of loss, the buyer of a straddle enjoys unlimited profit potential in the event of either a 
+large price rise or a large price decline. The maximum loss on a long straddle position is equal to the 
+total premium paid for both the long call and long put and will only be experienced if the expiration 
+price is equal to the futures price at the time the options were purchased. (Implicit assumption: both 
+the call and put are at-the-money options.)
+tabLe 35.7 profit/Loss Calculations: Long Straddle (Long Call + Long put)
+(1) (2) (3) (4) (5) (6) (7)
+Futures price 
+at expiration 
+($/oz)
+premium of august 
+$1,200 Call at 
+Initiation ($/oz)
+premium of august 
+$1,200 put at 
+Initiation ($/oz)
+$ amount of 
+total premium 
+paid
+Call Value at 
+expiration
+put Value at 
+expiration
+profit/Loss on 
+position  
+[(5) + (6) – (4)]
+1,000 38.8 38.7 $7,750 $0 $20,000 $12,250
+1,050 38.8 38.7 $7,750 $0 $15,000 $7,250
+1,100 38.8 38.7 $7,750 $0 $10,000 $2,250
+1,150 38.8 38.7 $7,750 $0 $5,000 –$2,750
+1,200 38.8 38.7 $7,750 $0 $0 –$7,750
+1,250 38.8 38.7 $7,750 $5,000 $0 –$2,750
+1,300 38.8 38.7 $7,750 $10,000 $0 $2,250
+1,350 38.8 38.7 $7,750 $15,000 $0 $7,250
+1,400 38.8 38.7 $7,750 $20,000 $0 $12,250
+1 Andrew T obias, Getting By on $100,000 a Year (and Other Sad T ales) (New Y ork, NY: Simon & Schuster, 1980).