Add training workflow, datasets, and runbook

training_data/curated/text/d7a7ef9d1b622f34132f6b93a2a0717c73b910b5f514927bf46332ebdeb5168f.txt

@@ -0,0 +1,39 @@
+310 Part Ill: Put Option Strategies 
+value that is 1 point less than the total straddle value initially taken in. This would 
+then allow him the chance to make a I-point profit overall, if the other option expired 
+worthless. In any case, there is always the risk that the stock would suddenly revers(' 
+direction and cause a loss on the remaining option as well. This method of follow-up 
+action is akin to the ratio writing follow-up strategy of using buy and sell stops on th<' 
+underlying stock. 
+Before describing other types of follow-up action that are designed to combat 
+the problems described above, it might be worthwhile to address the method used in 
+ratio writing - rolling up or rolling down. In straddle writing, there is often little to 
+be gained from rolling up or rolling down. This is a much more viable strategy in ratio 
+writing; one does not want to be constantly moving in and out of stock positions, 
+because of the commissions involved. Howeve1~ with straddle writing, once one posi­
+tion is closed, there is no need to pursue a similar straddle in that same stock. It may 
+be more desirable to look elsewhere for a new straddle position. 
+There are two other very simple forms of follow-up action that one might con­
+sider using, although neither one is for most strategists. First, one might consider 
+doing nothing at all, even if the underlying stock moves by a great deal, figuring that 
+the advantage lies in the probability that the stock will be back near the striking price 
+by the time the options expire. This action should be used only by the most diversi­
+fied and well-heeled investors, for in extreme market periods, almost all stocks may 
+move in unison, generating tremendous losses for anyone who does not take some 
+sort of action. A more aggressive type off allow-up action would be to attempt to "leg 
+out" of the straddle, by buying in the profitable side and then hoping for a stock price 
+reversal in order to buy back the remaining side. In the example above, when XYZ 
+ran up to 52, an aggressive trader would buy in the put at 1 ½, taking his profit, and 
+then hope for the stock to fall back in order to buy the call in cheaper. This is a very 
+aggressive type of follow-up action, because the stock could easily continue to rise in 
+price, thereby generating larger losses. This is a trader's sort of action, not that of a 
+disciplined strategist, and it should be avoided. 
+In essence, follow-up action should be designed to do two things: First, to limit 
+the risk in the position, and second, to still allow room for a potential profit to be 
+made. None of the above types of follow-up action accomplish both of these purpos­
+es. There is, however, a follow-up strategy that does allow the straddle writer to limit 
+his losses while still allowing for a potential profit. 
+Example: After the straddle was originally sold for 7 points when the stock was at 45, 
+the stock experiences a rally and the following prices exist: 
+XYZ common, 50; 
+XYZ January 45 call, 7;