Add training workflow, datasets, and runbook

training_data/curated/text/d4a7a698f7e32a00ffd400a731184647df0fbf12af268a966642f60217c6dc46.txt

@@ -0,0 +1,40 @@
+Cbapter 30: Stock Index Hedging Strategies 565 
+However, this flurry of block prints on the close might drive the index down by 2 or 
+3 points! This is an extremely large move for the index, and the option trader has no 
+recourse as the options cease trading. An index composed of only a few stocks, such 
+as the Dow-Jones 30 Industrials, will fall most dramatically when these events occur, 
+although the OEX will drop heavily as well. 
+We have also previously seen that the late market action on expiration day might 
+be bullish. If institutional arbitrageurs have established the futures spread by being 
+long the short-term futures and short the next series, then they will be buyers of 
+stocks at the close of trading on expiration day. Additionally, if the only remaining 
+arbitrage positions at expiration are short stocks versus long futures, then there might 
+also be buying pressure at expiration. 
+As might be expected, these events have not gone unnoticed and have caused 
+some consternation among both regulators and traders. There have been accusations 
+that some traders particularly those with foreknowledge of the block prints to come 
+buy very cheap index options on the last afternoon of trading and then force those 
+options to become profitable by selling their clients' portfolios in the manner 
+described above. 
+The strategist cannot be concerned with whether someone is acting irrationally 
+or worse. Rather, he must decide how he will handle the situation should it occur. 
+The key is to try to determine the direction that the market will move at the close of 
+expiration day, if that is discernible. If futures have had a large premium for a long 
+period of time, then one must assume that many hedgers have long stock versus short 
+futures. Furthermore, even if futures subsequently trade below fair value, there will 
+still be some hedgers who have stubbornly kept their positions, waiting to roll. The 
+strategist should recognize that fact and take appropriate action late on the last day 
+of trading: Don't establish bullish positions at that time and don't allow positions that 
+are expiring that day to become too bullish. That is, if one is short puts and the index 
+is trading near the striking price of the puts, then buy them back. 
+Thus, the strategist must be aware of how the futures have traded during the 
+last 3 months in order to determine how he will address his positions on the last day. 
+Even with this information, there is no guarantee that one can exactly predict what 
+will happen at expiration unless one is privy to the actual stock buy and sell orders. 
+This order flow information is closely guarded and known only to the firms that will 
+be executing the orders, generally on behalf of institutions. Consequently, it is a very 
+risky strategy to attempt to apply this information for establishing positions on expi­
+ration day itself. That is, if one expects stock buy orders at expiration, he might 
+decide to buy some cheap, expiring calls for himself on the last afternoon of trading. 
+Conversely, if he expects stock selling, he might buy puts. Given the fact that such 
+movements are hard to predict, such aggressive strategies are not warranted.