Add training workflow, datasets, and runbook

training_data/curated/text/ce8520be49d73df777e9c2eef1e915e08a1a083a905f7dd39ef58e83982fba20.txt

@@ -0,0 +1,44 @@
+50 Part II: Call Option Strategies 
+the written call would expire totally worthless and the writer might then write anoth­
+er call on the same stock. Later, we discuss the subject of continuing to write against 
+stocks already owned. It will be seen that in many cases, it is advantageous to con­
+tinue to hold a stock and write against it again, rather than to sell it and establish a 
+covered write in a new stock. 
+TABLE 2-6. 
+Downside break-even point-cash account. 
+Net investment 
+Less dividends 
+Total stock cost to expiration 
+Divide by shares held 
+Break-even price 
+$20,380 
+500 
+$19,880 
++ 500 
+39.8 
+Next, we translate the break-even price into percent downside protection 
+(Table 2-7), which is a convenient way of comparing the levels of downside protec­
+tion among variously priced stocks. We will see later that it is actually better to com­
+pare the downside protection with the volatility of the underlying stock. However, 
+since percent downside protection is a common and widely accepted method that is 
+more readily calculated, it is necessary to be familiar with it as well. 
+Before moving on to discuss what kinds of returns one should attempt to strive 
+for in which situati_ons, the same example will be worked through again for a covered 
+write in a margin account. The use of margin will provide higher potential returns, 
+since the net investment will be smaller. However, the margin interest charge 
+incurred on the debit balance (the amount of money borrowed from the brokerage 
+firm) will cause the break-even point to be higher, thus slightly reducing the amount 
+of downside protection available from writing the call. Again, all commissions to 
+establish the position are included in the net investment computation. 
+TABLE 2-7. 
+Percent downside protection-cash account. 
+Initial stock price 
+Less break-even price 
+Points of protection 
+Divide by original stock price 
+Equals percent downside protection 
+43 
+-39.8 
+3.2 
++43 
+7.4%