Add training workflow, datasets, and runbook

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+202  •   The Intelligent Option Investor
+realized loss because it cannot be recovered. If the stock fails to move into 
+the area of exposure before option expiration, there will be no profit to 
+offset this realized loss.
+In economic terms, this transaction allows an investor to sell short 
+an overvalued company without accepting an uncertain risk of loss if the 
+stock rises. Instead of the uncertain risk of loss, the investor must pay the 
+fixed premium. This strategy obeys the same rules of leverage as discussed 
+earlier in this book, with ITM put options offering less leverage but a great-
+er cushion before realizing a loss than do ATM or OTM put options.
+T enor Selection
+Shorting stocks, which is what you are doing when you buy put op-
+tions, is hard work, not for the faint of heart. There are a couple of 
+reasons for this:
+1. Markets generally go up, and for better or worse, a rising tide usu-
+ally does lift all boats.
+2. Even when a company is overvalued, it is hard to know what cata-
+lyst will make that fact obvious to the rest of the market and when.
+In the words of Jim Chanos, head of the largest short-selling hedge fund 
+in the world, the market is a “giant positive reinforcement machine. ”
+1 
+It is psychologically difficult to hold a bearish position when it seems 
+like the whole world disagrees with you. All these difficulties in taking 
+bearish positions are amplified by options because options are levered 
+instruments, and losses feel all the more acute when they occur on a 
+levered position.
+My rule for gaining bullish exposure is to pick the longest-tenor op-
+tion possible. I made the point that by buying LEAPS, you can enjoy a 
+likely upward drift that exceeds the drift assumed by option pricing. When 
+buying puts, you are on the opposite side of this drift factor (i.e., the “ris-
+ing tide lifts all boats” factor), and every day that the stock does not fall is 
+another day of time value that has decayed without you enjoying a profit. 
+On the other hand, if you decide not to spend as much on time value and 
+buy a shorter-tenor put option, unless the market realizes that the stock is