Add training workflow, datasets, and runbook

training_data/curated/text/ae59dc06f5452c12139c97e869b5049860beaf8ac42ef1834c6c38fe7f2bbe57.txt

@@ -0,0 +1,33 @@
+884 Part VI: Measuring and Trading VolatiHty 
+To answer the question, one must create two equations in two unknowns, x and 
+y. The unknowns represent the quantities of options to be bought and sold, respec­
+tively. The constants in the equations are taken from the table above. 
+The first equation represents gamma neutral: 
+0.045 X + 0.026 y = 0, 
+where 
+xis the number of April 50's in the spread and y is the number of April 60's. Note 
+that the constants in the equation are the gammas of the two calls involved. 
+The second equation represents the desired vega risk of making 2.5 points, or $250, 
+if the volatility decreases: 
+0.08 X + 0.06 y = - 2.5, 
+where 
+x and y are the same quantities as in the first equation, and the constants in this equa­
+tion are the gammas of the options. Furthermore, note that the vega risk is negative, 
+since the spreader wants to profit if volatility decreases. 
+Solving the two equations in two unknowns by algebraic methods yields the fol­
+lowing results: 
+Equations: 
+0.045 X + 0.026 y = 0 
+0.08 X + 0.06 Y = - 2.5 
+Solutions: 
+X = 104.80 
+y = -181.45 
+This means that one would buy 105 April 50 calls, since x being positive means that 
+the options would be bought. He would also sell 181 April 60 calls (y is negative, 
+which implies that the calls would be sold). This is nearly the same ratio determined 
+in the previous example. The quantities are slightly higher, since the vega here is 
+-$250 instead of the -$238 achieved in the previous example. 
+Finally, one would again determine the amount of stock to buy or sell to neu­
+tralize the delta by computing the position delta: 
+Position delta = 105 x 0.47 - 181 x 0.17 = 18.58 
+Thus 1,858 shares of XYZ would be shorted to neutralize the position.