Add training workflow, datasets, and runbook

training_data/curated/text/ee6e058801937f1f287be74b00b28239f52e6ab2dfa29455f1eb8eb3c093274f.txt

@@ -0,0 +1,36 @@
+Chapter 6: Ratio Call Writing 155 
+underpriced, the advantage lies with the buyer of calls, and that situation is inherent 
+in the reverse hedge strategy. 
+The summaries stated in the above paragraph are rather simplistic ones, refer­
+ring mostly to what one can expect from the strategies if they are held until expira­
+tion, without adjustment. In actual trading situations, it is much more likely that one 
+would have to make adjustments to the ratio write along the way, thus disturbing or 
+perhaps even eliminating the profit range. Such travails do not befall the reverse 
+hedge (simulated straddle buy). Consequently, when one takes into consideration the 
+stock movements that can take place prior to expiration, the ratio write loses some of 
+its attractiveness and the reverse hedge gains some. 
+THE VARIABLE RATIO WRITE 
+In ratio writing, one generally likes to establish the position when the stock is trading 
+relatively close to the striking price of the written calls. However, it is sometimes the 
+case that the stock is nearly exactly between two striking prices and neither the in­
+the-money nor the out-of-the-money call offers a neutral profit range. If this is the 
+case, and one still wants to be in a 2:1 ratio of calls written to stock owned, he can 
+sometimes write one in-the-money call and one out-of-the-money call against each 
+100 shares of common. This strategy, often termed a variable ratio write or trape­
+zoidal hedge, serves to establish a more neutral profit range. 
+Example: Given the following prices: XYZ common, 65; XYZ October 60 call, 8; and 
+XYZ October 70 call, 3. 
+If one were to establish a 2:1 ratio write with only the October 60's, he would 
+have a somewhat bearish position. His profit range would be 49 to 71 at expiration. 
+Since the stock is already at 65, this means that he would be allowing room for 16 
+points of downside movement and only 6 points on the upside. This is certainly not 
+neutral. On the other hand, if he were to attempt to utilize only the October 70 calls 
+in his ratio write, he would have a bullish position. This profit range for the October 
+70 ratio write would be 59 to 81 at expiration. In this case, the stock at 65 is too close 
+to the downside break-even point in comparison to its distance from the upside 
+break-even point. 
+A more neutral position can be established by buying 100 XYZ and selling one 
+October 60 and one October 70. This position has a profit range that is centered 
+about the current stock price. Moreover, the new position has both an upside and a 
+downside risk, as does a more normal ratio write. However, now the maximum prof­
+it can be obtained anywhere between the two strikes at expiration. To see this, note