Add training workflow, datasets, and runbook

training_data/curated/text/c3a432c7c833b73bea0bbc10430377ad4ebbee056a336e8dd6732f73657b6dd2.txt

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+676 Part V: Index Options and Futures 
+In this case, the formula yields an incorrect result: 
+Net change futures= +0.30 - (-0.02) = +0.32 
+Since the futures are really up 50 cents, one can assume that one of the last sales 
+is out of date. It is obviously the April 17 call, since that is the in-the-money option; 
+if one were to ask for a quote from the trading floor, that option would probably be 
+indicated up about 48 cents on the day. 
+DELTA 
+While we are on the subject of pricing, a word about delta may be in order as well. 
+The delta of a futures option has the same meaning as the delta of a stock option: It 
+is the amount by which the option is expected to increase in price for a one-point 
+move in the underlying futures contract. As we also know, it is an instantaneous meas­
+urement that is obtained by taking the first derivative of the option pricing model. 
+In any case, the delta of an at-the-money stock or index option is greater than 
+0.50; the more time remaining to expiration, the higher the delta is. In a simplified 
+sense, this has to do with the cost of carrying the value of the striking price until the 
+option expires. But part of it is also due to the distribution of stock price movements 
+- there is an upward bias, and with a long time remaining until expiration, that bias 
+makes call movements more pronounced than put movements. 
+Options on futures do not have the carrying cost feature to deal with, but they 
+do have the positive bias in their price distribution. A futures contract, just like a 
+stock, can increase by more than 100%, but cannot fall more than 100%. 
+Consequently, deltas of at-the-money futures calls will be slightly larger than 0.50. 
+The more time remaining until expiration of the futures option, the higher the at-the­
+money call delta will be. 
+Many traders erroneously believe that the delta of an at-the-money futures 
+option is 0.50, since there is no carrying cost involved in the futures conversion or 
+reversal arbitrage. That is not a true statement, since the distribution of futures prices 
+affects the delta as well. 
+As always, for futures options as well as for stock and index options, the delta of 
+a put is related to the delta of a call with the same striking price and expiration date: 
+Delta of put = 1 - Delta of call 
+Finally, the concept of equivalent stock position applies to futures opti<i>n strate­
+gies, except, of course, it is called the equivalent futures position (EFP). The EFP is 
+calculated by the simple formula: 
+EFP = Delta of option x Option quantity