Add training workflow, datasets, and runbook

training_data/curated/text/afcec3c75786522c7d391c9ec1d47395887236852166e311aee1760407d66d99.txt

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+EXHIBIT 12.8 Delta-neutral long call, short stock position.
+With the stock at $49.70, the calls had +0.51 delta per contract, or +10.2
+for the 20-lot. The short sale of 1,000 shares got Bobby as close to delta-
+neutral as possible without trading an odd lot in the stock. The net position
+delta was +0.20, or about the equivalent of being long 20 shares of stock.
+Bobby’s objective in this case is to profit from an increase in implied
+volatility leading up to earnings.
+While Susie was looking for reversion to the mean, Bobby hoped for a
+further divergence. For Bobby, positive gamma looked like a good thing on
+the surface. However, his plan was to close the position just before earnings
+were released—before the vol crush and before the potential stock-price
+move. With realized volatility already starting to drop off at the time the
+trade was put on, gamma offered little promise of gain.
+As fate would have it, IV did indeed increase. At the end of the day before
+the July earnings report, IV was trading at 35 percent. Bobby closed his
+trade by selling his 20-lot of the 50 calls at 2.10 and buying his 1,000 shares
+of stock back at $50. Exhibit 12.9 shows the P&(L) for each leg of the
+spread.
+EXHIBIT 12.9 Profit breakdown.