Add training workflow, datasets, and runbook

training_data/curated/text/c626156d5991fddf32fa59f98afed48c712d7f51378acbd1de10a92687dc1219.txt

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+Finding Mispriced Options    • 157
+to eyeball the ATM volatility for the one- and two-month contracts.
+3. If there is a large bid-ask spread, the relevant forward volatility 
+to use is equal to the implied volatility we want to transact. In 
+other words, use the ask implied volatility if you are thinking 
+about gaining exposure and the bid implied volatility if you are 
+thinking about accepting exposure (the online application shows 
+cones for both the bid implied volatility and the ask implied 
+volatility).
+Basically, these rules are just saying, “If you want to know what the 
+option market is expecting the future price range of a stock to be, find a 
+nice, liquid near ATM strike’s implied volatility and use that. ” Most op-
+tion trading is done in a tight band around the present ATM mark and for 
+expirations from zero to three months out. By looking at the most heavily 
+traded implied volatility numbers, we are using the market’s price-discov-
+ery function to the fullest. Big announcements sometimes can throw off  
+the true volatility picture, which is why we try to avoid gathering infor -
+mation from options in these cases (e.g., legal decisions, Food and Drug 
+Administration trial decisions, particularly impactful quarterly earnings 
+announcements, and so on). 
+If I was looking at Oracle, I would probably choose the $32-strike 
+options expiring in September. These are the 50-delta options with  
+61 days to expiration, and there is not much of a difference between 
+calls and puts or between the bid and ask. The August expiration op-
+tions look a bit suspicious to me considering that their implied volatility 
+is a couple of percentage points below that of the others. It probably 
+doesn’t make a big difference which you use, though. We are trying to 
+find opportunities that are severely mispriced, not trying to split hairs 
+of a couple of percentage points. All things considered, I would prob-
+ably use a number somewhere around 22 percent for Oracle’s forward 
+volatility.
+C12.02 11.75 N/A 55.427% 0.9897 C0.00 0.02 N/A 50.831%- 0.01032011.90
+C11.03 10.70 N/A 123.903% 0.9869 C0.01 0.03 N/A 48.233%- 0.01312112.35
+C10.04 9.50 N/A 64.054% 0.9834 C0.03 0.05 37.572% 46.993%- 0.01660.012210.10
+C0.06 0.04 20.455% 21.147% 0.0463 C5.03 5.55 N/A 36.111%- 0.95584.95370.05
+1.65 1.65 22.720% 23.311% 0.6325 0.84 +0.07 0.82 22.989% 23.384%- 0.36790.80311.68-0.13
+1.06 1.08 22.019% 22.407% 0.4997 1.23 +0.05 1.25 22.284% 22.672%- 0.50081.23321.10-0.12
+0.66 0.65 21.378% 21.813% 0.3606 1.88 +0.16 1.82 21.453% 22.106%- 0.64021.79330.67-0.07
+0.02 0.01 21.354% 23.409% 0.0155 C6.99 7.55 N/A 44.342%- 0.98716.85390.02+0.01
+0.03 0.01 19.050% 22.144% 0.0266 C6.00 6.30 17.134% 30.947%- 0.97576.15380.030.00
+SEP 20 ´13