Add training workflow, datasets, and runbook

training_data/curated/text/ec5f5426c81cbf9ea9676f1cc4f0966f71232e3b759c2ddd7cf9b0f3a018d3a8.txt

@@ -0,0 +1,26 @@
+EXHIBIT 11.10 10-lot Minnesota Mining & Manufacturing Aug–Oct 85–
+90 double call calendar.
+These numbers are a good representation of the position’s risk. Knowing
+that long calendars and long double calendars have maximum losses at the
+expiration of the short-term option equal to the net premiums paid, the max
+loss in this example is 3.20. Break-even prices are not relevant to this
+position because they cannot be determined with any certainty. What is
+important is to get a feel for how much movement can hurt the position.
+To make $19 a day in theta, a −0.468 gamma must be accepted. In the
+long run, $1 of movement is irrelevant. In fact, some movement is favorable
+because the ideal point for MMM to be at, at August expiration is either $85
+or $90. So while small moves are acceptable, big moves are of concern. The
+negative gamma is an illustration of this warning.
+The other risk besides direction is vega. A positive 1.471 vega means the
+calendar makes or loses about $147 with each one-point across-the-board
+change in implied volatility. Implied volatility is a risk in all calendar
+trades. Volatility was one of the criteria studied when considering this trade.
+Recall that the August IV was one point higher than the October and that
+the October IV was in line with the 30-day historical volatility at inception
+of the trade.
+Considering the volatility data is part of the due diligence when
+considering a calendar or a double calendar. First, the (slightly) more
+expensive options (August) are being sold, and the cheaper ones are being
+bought (October). A study of the company reveals no news to lead one to
+believe that Minnesota Mining & Manufacturing should move at a higher
+realized volatility than it currently is in this example. Therefore, the front