Add training workflow, datasets, and runbook

training_data/curated/text/d0bb823e93e08b1566beccb8466da50526b51ea67265bdf81a714ff5df726df5.txt

@@ -0,0 +1,34 @@
+to its value increase? Was it delta because the underlying stock rose? Or
+was it vega because volatility rose? How did time decay factor in? Using a
+volatility chart in conjunction with a conventional stock chart (and being
+aware of time decay) tells the whole, complete, story.
+Another reason historical option prices are not used in TA is the option
+bid-ask spread. For most stocks, the difference between the bid and the ask
+is equal to a very small percentage of the stock’s price. Because options are
+highly leveraged instruments, their bid-ask width can equal a much higher
+percentage of the price.
+If a trader uses the last trade to graph an option’s price, it could look as if
+a very large percentage move has occurred when in fact it has not. For
+example, if the option trades a small contract size on the bid (0.80), then on
+the offer (0.90) it would appear that the option rose 12.5 percent in value.
+This large percentage move is nothing more than market noise. Using
+volatility data based off the midpoint-of-the-market theoretical value
+eliminates such noise.
+Fundamental Analysis
+Fundamental analysis can have an important role in developing
+expectations for IV. Fundamental analysis is the study of economic factors
+that affect the value of an asset in order to determine what it is worth. With
+stocks, fundamental analysis may include studying income statements,
+balance sheets, and earnings reports. When the asset being studied is IV,
+there are fewer hard facts available. This is where the art of analyzing
+volatility comes into play.
+Essentially, the goal is to understand the psychology of the market in
+relation to supply and demand for options. Where is the fear? Where is the
+complacency? When are news events anticipated? How important are they?
+Ultimately, the question becomes: what is the potential for movement in the
+underlying? The greater the chance of stock movement, the more likely it is
+that IV will rise. When unexpected news is announced, IV can rise quickly.
+The determination of the fundamental relevance of surprise announcements
+must be made quickly.
+Unfortunately, these questions are subjective in nature. They require the
+trader to apply intuition and experience on a case-by-case basis. But there