Add training workflow, datasets, and runbook

training_data/curated/text/e4b6e7b4f529c6a1166fa27fcbc2587e55a523c47f6e5b923fd9ed29af211503.txt

@@ -0,0 +1,37 @@
+Otapter 6: Ratio Call Writing 147 
+would be offset by a 12-point gain on the calls. As with any strategy in which calls are 
+sold, the maximum profit occurs at the striking price of the written calls at expiration. 
+In this example, if XYZ were at 50 at expiration, the calls would still expire worthless 
+for a 12-point gain and the writer would have a 1-point profit on his stock, which has 
+moved up from 49 to 50, for a total gain of 13 points. This position therefore has 
+ample downside protection and a relatively large potential profit. Should XYZ rise 
+above 50 by expiration, the profit will decrease and eventually become a loss if the 
+stock rises too far. To see this, suppose XYZ is at 63 at October expiration. The calls 
+will be at 13 points each, representing a 7-point loss on each call, because they were 
+originally sold for 6 points apiece. However, there would be a 14-poirit gain on the 
+stock, which has risen from 49 to 63. The overall net is a break-even situation at 63 -
+a 14-point gain on the stock offset by 14 points ofloss on the options (7 points each). 
+Table 6-1 and Figure 6-1 summarize the profit and loss potential of this example at 
+October expiration. The shape of the graph resembles a roof with its peak located at 
+the striking price of the written calls, or 50. It is obvious that the position has both 
+large upside risk above 63 and large downside risk below 37. Therefore, it is imper­
+ative that the ratio writer plan to take follow-up action if the stock should move out­
+side these prices. Follow-up action is discussed later. If the stock remains within the 
+range 37 to 63, some profit will result before commission charges. This range 
+between the downside break-even point and the upside break-even point is called the 
+profit range. 
+This example represents essentially a neutral position, because the ratio writer 
+will make some profit unless the stock falls by more than 12 points or rises by more 
+than 14 points before the expiration of the calls in October. This is frequently an 
+attractive type of strategy to adopt because, normally, stocks do not move very far in 
+TABLE 6-1. 
+Profit and loss at October expiration. 
+XYZ Price at Stock Call Profit Total 
+Expiration Profit Price on Calls Profit 
+30 -$1,900 0 +$1,200 -$ 700 
+37 - 1,200 0 + 1,200 0 
+45 400 0 + 1,200 + 800 
+50 + 100 0 + 1,200 + 1,300 
+55 + 600 5 + 200 + 800 
+63 + 1,400 13 - 1,400 0 
+70 + 2,100 20 - 2,800 - 700