Add training workflow, datasets, and runbook

training_data/curated/text/d8f41eff24037c429904526844860832032a340f004e008a1eee4010df716427.txt

@@ -0,0 +1,36 @@
+148 
+FIGURE 6-1. 
+Ratio write (2: 1 ). 
++$1,300 
+C 
+0 
+e ·5. 
+X 
+LU 
+al 
+rn rn 
+.3 
+0 
+-e a. 
+Part II: Call Option Strategies 
+Stock Price at Expiration 
+a 3- or 6-month time period. Consequently, this strategy has a rather high probabili­
+ty of making a limited profit. The profit in this example would, of course, be reduced 
+by commission costs and margin interest charges if the stock is bought on margin. 
+Before discussing the specifics of ratio writing, such as investment required, 
+selection criteria, and follow-up action, it may be beneficial to counter two fairly 
+common objections to this strategy. The first objection, although not heard as fre­
+quently today as when listed options first began trading, is "Why bother to buy 100 
+shares of stock and sell 2 calls? You will be naked one call. Why not just sell one 
+naked call?" The ratio writing strategy and the naked writing strategy have very little 
+in common except that both have upside risk. The profit graph for naked writing 
+(Figure 5-1) bears no resemblance to the roof-shaped profit graph for a ratio write 
+(Figure 6-1). Clearly, the two strategies are quite different in profit potential and in 
+many other respects as well. 
+The second objection to ratio writing for the conservative investor is slightly 
+more valid. The conservative investor may not feel comfortable with a position that 
+has risk if the underlying stock moves up in price. This can be a psychological detri­
+ment to ratio writing: When stock prices are rising and everyone who owns stocks is 
+happy and making profits, the ratio writer is in danger of losing money. However, in 
+a purely strategic sense, one should be willing to assume some upside risk in 
+exchange for larger profits if the underlying stock does not rise heavily in price. The