Add training workflow, datasets, and runbook

training_data/curated/text/eaa2ffd92bca331eae3e917a1d6ee9157620637a44ce4ac68af080caef9591b0.txt

@@ -0,0 +1,38 @@
+670 Part V: Index Options and Futures 
+While the exchange does not tell us how much of an increase or decrease it uses 
+in terms of volatility, one can get something of a feel for the magnitude by looking at 
+the first two lines of the table. The exchange is saying that if the futures are 
+unchanged tomorrow, but volatility "increases," then the call will increase in value by 
+$460 (92 cents); if it "decreases," however, the call will lose $610 (1.22 points) of 
+value. These are large piice changes, so one can assume that the volatility assump­
+tions are significant. 
+The real ease of use of the SPAN iisk array is when it comes to evaluating the 
+iisk of a more complicated position, or even a portfolio of options. All one needs to 
+do is to combine the risk array factors for each option or future in the position in 
+order to arrive at the total requirement. 
+Example: Using the above two examples, one can see what the SPAN requirements 
+would be for a covered wiite: long the S&P future and short the Dec 410 call. 
+Short 1 
+Long Dec 410 call 
+1 S&P Potential Covered 
+Scenario Future Pft/Loss Write 
+Futures unchanged; vol. up 0 460 - 460 
+Futures unchanged; vol. down 0 + 610 + 610 
+Futures up 1 /3 of range; vol. up + 3,330 - 2,640 + 690 
+Futures up 1 /3 of range; vol. down + 3,330 - 1,730 + 1,600 
+Futures down 1 /3 of range; vol. up - 3,330 + 1,270 -2,060 
+Futures down 1 /3 of range; vol. down 3,330 + 2,340 - 990 
+Futures up 2/3 of range; vol. up + 6,670 - 5,210 + 1,460 
+Futures up 2/3 of range; vol. down + 6,670 - 4,540 +2, 130 
+Futures down 2/3 of range; vol. up 6,670 + 2,540 -4, 130 
+Futures down 2/3 of range; vol. down - 6,670 + 3,430 -3,240 
+Futures up 3/3 of range; vol. up + 10,000 - 8,060 + 1,940 
+Futures up 3/3 of range; vol. down + 10,000 - 7,640 +2,360 
+Futures down 3/3 of range; vol. up -10,000 + 3,380 -6,620 
+Futures down 3/3 of range; vol. down -10,000 + 3,990 -6,010 
+Futures up ,, extreme" move + 7,000 - 3,130 +3\870 
+Futures down "extreme" move - 7,000 + 1,500 -5,500 
+As might be expected, the worst-case projection for a covered wiite is for the 
+stock to drop, but for the implied volatility to increase. The SPAN system projects 
+that this covered wiiter would lose $6,620 if that happened. Thus, "futures down 3/3 
+of range; volatility up" is the SPAN requirement, $6,620.