Add training workflow, datasets, and runbook

training_data/curated/text/b07878ebd33a028736c0590912558723f5e37a3494ddb2d41353cc4caa2231a1.txt

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+Accepting Exposure   • 219
+Looking at this diagram closely, you should be able to see several 
+things:
+1. The investor who is short this put certainly has a notable unrealized 
+loss on his or her position. Y ou can tell this because the put the 
+investor sold is now much more valuable than at the time of 
+the original sale (more of the range of exposure is carved out by 
+the BSM cone now). When you sell something at one price and the 
+value of that thing goes up in the future, you suffer an opportunity 
+loss on your original sale.
+2. With the drop in price and the cut in fair value, the downside ex-
+posure on this stock still looks overvalued.
+3. If the company were to perform so that its share price eventually 
+hit the new, reduced best-case valuation mark, the original short-
+put position would generate a profit—albeit a smaller profit than 
+the one originally envisioned.
+At this point, there are a couple of choices open to the investor:
+1. Convert the unrealized loss on the short-put position to a realized 
+one by buying $50-strike puts to close the position (a.k.a. cover the 
+position).
+2. Leave the position open and manage it in the same way that the 
+investor would manage a struggling stock position.
+It is rarely a sound idea to close a short put immediately after the re-
+lease of information that drives down the stock price (the first choice above, 
+in other words). At these times, investors are generally panicked, and this 
+panic will cause the price of the option you buy to cover to be more expen-
+sive than justified. Waiting a few days or weeks for the fear to drain out of 
+the option prices (i.e., for the BSM cone to narrow) and for the stock price 
+to stabilize some will usually allow you to close the option position at a more 
+favorable price. There is one exception to this rule: if your new valuation 
+suggests a fair value at or below the present market price, it is better to close 
+the position immediately and realize those losses. If you do not close the 
+position, you are simply gambling (as opposed to investing) because you no 
+longer have a better than even chance of making money on the investment.