Add training workflow, datasets, and runbook

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Index 313
Optionality, 4
Options, 328
buying (see Exposure-gaining
strategies)
characteristics of, 4
defined, 4
directionality of, 920
examples of, 56
expiration of, 187
history of, 69
investment leverage from, 166168
misconceptions about, 1
mispriced, 143162
(See also specific types)
Options Clearing Corporation (OCC), 8
Options contracts:
counterparties for, 295n1 (Chapter 1)
examples of, 56
front-month, 270
private, 68
Oracle, 107108, 144, 146, 148153,
155, 157, 159162
Organic revenue growth, 97
Out-of-the-money (OTM) options:
ATM options vs., 233234
call vs. put, 27
collars, 258262
defined, 13, 16, 17
investment leverage for, 171172
levered strategy with, 180, 181
long calls, 193, 195197
long diagonals, 235237
long puts, 203, 204
long strangles, 205207
and market makers, 147
pricing of, 150
protective puts, 248, 250253
realized losses and, 187
rising volatility and, 7074
short diagonals, 238240
short puts, 213, 215
short strangles, 231
short-call spreads, 221224
time decay for, 6667
unrealized losses, 187
Overconfidence, 118122
Overexposure, 247
Overlays, 23, 234
Owners:
cash flows generated on behalf of,
8082
free cash flow to (see Free cash flow
to owners (FCFO))
Owners cash profit (OCP):
defined, 82
nominal GDP growth vs., 104108
profitability as, 99102
P
Parity, 288
Pattern recognition, 114118
Peaks (business-cycle):
operational leverage in, 284
and troughs, 302303n2
Pension funds, 135, 136
Percent delta, 169173
Percent profit, 172173
Percentage return, 229
Portfolio management:
for long calls, 196201
for long puts, 204205
for long strangles, 207
for short puts, 216220
for short-call spreads, 228230
Portfolios:
hedging, 251252
investment leverage in, 174183
Precision, false, 93, 9697
Premium, 13
Prepaid interest, 170
Present value of future cash flows, 8789
Pricing power, 98
Principal (financial), 168
Principals, agents vs., 131132
Problem solving, X- vs. C-system,
115118