Add training workflow, datasets, and runbook

training_data/curated/text/f091eb14efcf5df1bbbe6d2d43d86f7d8f29f3a08df04f48bc103e5fa819eb8a.txt

@@ -0,0 +1,37 @@
+378 Part Ill: Put Option Strategies 
+stock owner would have been. If the company declared a stock dividend, it would 
+have no effect on this strategy since the call owner is entitled to those. A change in 
+interest rates is not a factor either, since the owner of the LEAPS should invest in a 
+1-year Treasury bill or a 1-year CD and therefore would not be subject to interim 
+changes in short-term interest rates. 
+There may be other mitigating circumstances. Mostly these would involve tax 
+considerations. If the stock is currently a profitable investment, the sale would gen­
+erate a capital gain, and taxes might be owed. If the stock is currently being held at 
+a loss, the purchase of the call would constitute a wash sale and the loss could not be 
+taken at this time. (See Chapter 41 on taxes for a broader discussion of the wash sale 
+rule and option trading.) 
+In tl1eory, the calculations above could produce an overall credit, in which case the 
+stockholder W(?uld normally want to substitute with the call, unless he has overriding tax 
+considerations or suspects that a cash dividend increase is going to be announced. Be 
+very careful about switching if this situation should arise. Normally, arbitrageurs - per­
+sons trading for exchange members and paying no commission - would take advantage 
+of such a situation before the general public could. If they are letting the opportunity 
+pass by, there must be a reason (probably the cash dividend), so be extremely certain of 
+your economics and research before venturing into such a situation. 
+In summary, holders of common stock on which there exist in-the-money 
+LEAPS should evaluate the economics of substituting the LEAPS call for the com­
+mon stock. Even if arithmetic calculations call for the substitution, the stockholder 
+should consider his tax situation as well as his outlook for the cash dividends to be 
+paid by the common before making the switch. 
+BUYING LEAPS AS THE INITIAL PURCHASE 
+INSTEAD OF BUYING A COMMON STOCK 
+Logic similar to that used earlier to determine whether a stockholder might want to 
+substitute a LEAPS call for his stock can be used by a prospective purchaser of com­
+mon stock. In other words, this investor does not already own the common. He is 
+going to buy it. This prospective purchaser might want to buy a LEAPS call and put 
+the rest of the money he had planned to use in the bank, instead of actually buying 
+the stock itself. 
+His costs - real and opportunity - are calculated in a similar manner to those 
+expressed earlier. The only real difference is that he has to spend the stock commis­
+sion in this case, whereas he did not in the previous example (since he already owned 
+the stock).