Add training workflow, datasets, and runbook

training_data/curated/text/cb86f4710e5b39486dd5f5d8e9d274fc4b7f1da910ad08893741c627245d54d6.txt

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+150  •   The Intelligent Option Investor
+18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39
+Strike Price
+Oracle (ORCL) Implied Volatility
+Implied Volatility (Percent)
+160
+180
+140
+100
+120
+80
+40
+60
+20
+0
+Thinking about what volatility means with regard to future stock 
+prices—namely, that it is a prediction of a range of likely values—it does not 
+make sense that options struck at different prices would predict such radi-
+cally different stock price ranges. What the market is saying, in effect, is that it 
+expects different things about the likely future range of stock prices depending 
+on what option is selected. Clearly, this does not make much sense.
+This “nonsensical” effect is actually proof that practitioners 
+understand that the Black-Scholes-Merton model’s (BSM’s) assumptions 
+are not correct and specifically that sudden downward jumps in a stock 
+price can and do occur more often than would be predicted if returns fol-
+lowed a normal distribution. This effect does occur and even has a name—
+the volatility smile . Although this effect is extremely noticeable when 
+graphed in this way, it is not particularly important for the intelligent op-
+tion investing strategies about which I will speak. Probably the most im-
+portant thing to realize is that the pricing on far OTM and far ITM options 
+is a little more informal and approximate than for ATM options, so if you 
+are thinking about transacting in OTM or ITM options, it is worth looking 
+for the best deal available. For example, notice that in the preceding dia-
+gram, the $21-strike implied volatility is actually notably higher than the