Add training workflow, datasets, and runbook

training_data/curated/text/e353ec2707792464ca9823b57f95c5afd51618702925cc8cf23cb6f9aeb4829f.txt

@@ -0,0 +1,41 @@
+517
+OPTION TrAdINg STrATegIeSComment.  The short straddle position will be profi  table over a wide range of prices. The best outcome 
+for a seller of a straddle is a totally unchanged market. In this circumstance, the seller will realize his 
+maximum profi  t, which is equal to the total premium received for the sale of the call and put. The short 
+straddle position will remain profi  table as long as prices do not rise or decline by more than the combined 
+total premium of the two options. The seller of the straddle enjoys a large probability of a profi  table trade, 
+in exchange for accepting unlimited risk in the event of either a very sharp price advance or decline. 
+ This strategy is appropriate if the speculator expects prices to trade within a moderate range, but 
+has no opinion regarding the probable market direction. A trader anticipating nonvolatile market con-
+ditions, but also having a price-directional bias, would be better off   selling either calls or puts rather 
+than a straddle. For example, a trader expecting low volatility and modestly declining prices should 
+sell 2 calls instead of selling a straddle.   
+ Strategy 9: bullish “texas Option hedge” (Long Futures + Long Call) 2
+example . Buy August gold futures at  $1,200  and simultaneously buy an August  $1,200  gold futures 
+call at a premium of  $38.80 /oz  ($3,880).  (See Table   35.9    and Figure   35.9   .)   
+    FIGURE   35.8    Profi  t/loss Profi  le: Short Straddle (Short Call + Short Put) 
+ Profi  t/loss Profi  le: Short Straddle (Short Call + Short Put) 
+Price of August gold futures at option expiration ($/oz)
+Breakeven price
+= $1,122.50
+Breakeven price
+= 1,277.50
+Profit/loss at expiration ($)
+1,000
+5,000
+10,000
+–10,000
+–15,000
+–5,000
+0
+1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400
+Futures price at time
+of position initiation
+and call and put
+strike prices
+ 2  By defi  nition, a hedge implies a futures position opposite to an existing or anticipated actual position. In com-
+modity trading,  T exas hedge  is a facetious reference to so-called “hedgers” who implement a futures position in the 
+same direction as their cash position. The classic example of a T exas hedge would be a cattle feeder who goes long 
+cattle futures. Whereas normal hedging reduces risk, the T exas hedge increases risk. There are many option strate-
+gies that combine off  setting positions in options and futures. This strategy is unusual in that it combines reinforcing 
+positions in futures and options. Consequently, the term T exas option hedge seems to provide an appropriate label.