Add training workflow, datasets, and runbook

training_data/curated/text/d483cca1aadd6e66abca580451f0770731346b5b2d0b3a620f4e9a7b576c09a9.txt

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+720 Part V: Index Options and Futures 
+where vi = volatility 
+Pi = price of the underlying 
+ui = unit of trading of the option 
+Lli = delta of the option 
+Example: Suppose that one indeed wants to buy crude oil calls and also buy puts on 
+the XOI Index because he thinks that crude oil is cheap with respect to oil stocks. 
+The following prices exist: 
+July crude futures: 16.35 
+Crude July 1550 call: 1.10 
+Volatility: 25% 
+Call delta: O. 7 4 
+$XOI: 256.50 
+June 265 put: 14½ 
+Volatility: 17% 
+Put delta: 0. 73 
+The unit of trading for XOI options is $100 per point, as it is with nearly all stock and 
+index options. The unit of trading for crude oil futures and options is $1,000 per 
+point. With all of this information, the ratio can be computed: 
+Crude= 1,000 x 0.25 x 16.35 x 0.74 
+XOI = 100 x 0.17 x 256.50 x 0.73 
+Ratio = Crude/ XOI = 0.91 
+Therefore, one would buy 0.91 XOI put for every 1 crude oil call that he bought. For 
+small accounts, this is essentially a 1-to-l ratio, but for large accounts, the exact ratio 
+could be used (for example, buy 91 XOI puts and 100 crude oil calls). The resultant 
+quantities encompass the various differences in these two markets - mainly the price 
+and volatility of the underlyings, plus the large differential in their units of trading 
+(100 vs. 1,000). 
+SUMMARY 
+Futures spreading is a very important and potentially profitable endeavor. Utilizing 
+options in these spreads can often improve profitability to the point that an originally 
+mistaken assumption can be overcome by volatility of price movement.