Add training workflow, datasets, and runbook

training_data/curated/text/b17e8af8a57e1594151e3ab325a92c75dd9de0ee460a2bdd1717768ed13baed8.txt

@@ -0,0 +1,33 @@
+or
+With American options, a put this far in-the-money with less than 71 days
+until expiry will be all intrinsic value. Interest, in this case, will not factor
+into the put’s value, because the put can be exercised. By exercising the put,
+both the long stock leg and the long put leg can be closed for even money,
+leaving only the theoretically worthless call. The stock-synthetic spread is
+sold at 0.46 and essentially bought at zero when the put is exercised. If the
+put is exercised before expiration, the profit potential is 0.46 minus the
+interest calculated between the trade date and the day the put is exercised.
+If, however, the conversion is held until expiration, the $0.46 is negated by
+the $0.486 of interest incurred from holding long stock over the entire 71-
+day period, hence the trader’s desire to see the stock decline before
+expiration, and thus the negative bias toward delta.
+This is, incidentally, why the synthetic price (0.46 over the stock price)
+does not exactly equal the calculated value of the interest (0.486). The
+trader can exercise the put early if the stock declines and capitalize on the
+disparity between the interest calculated when the conversion was traded
+and the actual interest calculation given the shorter time frame. The model
+values the synthetic at a little less than the interest value would indicate—in
+this case $0.46 instead of $0.486.
+The gamma of this trade is fairly negligible. The theta is slightly positive.
+Rho is the figure that deserves the most attention. Rho is the change in an
+option’s price given a change in the interest rate.
+The −0.090 rho of the conversion indicates that if the interest rate rises
+one percentage point, the position as a whole loses $0.09. Why? The
+financing of the position gets more expensive as the interest rate rises. The
+trader would have to pay more in interest to carry the long stock. In this
+example, if interest rises by one percentage point, the synthetic stock, which
+had an effective short price of $0.46 over the price of the long stock before
+the interest rate increase, will be $0.55 over the price of the long stock
+afterward. If, however, the interest rate declines by one percentage point,
+the trader profits $0.09, as the synthetic is repriced by the market to $0.37
+over the stock price. The lower the interest rate, the less expensive it is to