Add training workflow, datasets, and runbook

training_data/relevant/text/3880d526c4be756983532f254413a962eabdef21a2179510ac9f73d66f1e00f7.txt

@@ -0,0 +1,33 @@
+20 Part I: Basic Properties ol Stoclc Options 
+1. Buy the January 40 call at 9.80. 
+2. Sell short XYZ common stock at 50. 
+3. Exercise the call to buy XYZ at 40. 
+The arbitrageur makes 10 points from the short sale of XYZ (steps 2 and 3), from 
+which he deducts the 9.80 points he paid for the call. Thus, his total gain is 20 cents 
+- the amount of the discount. Since he pays only a minimal commission, this trans-
+action results in a net profit. ' 
+Also, if the writer can expect assignment when the option has no time value pre­
+mium left in it, then conversely the option will usually not be called if time premium 
+is left in it. 
+Example: Prior to the expiration date, XYZ is trading at 50½, and the January 50 call 
+is trading at 1. The call is not necessarily in imminent danger of being called, since it 
+still has half a point of time premium left. 
+Time value Call Striking Stock 
+= + premium price price price 
+= 1 + 50 50½ 
+= ½ 
+Early Exercise Due to Dividends on the Underlying Stock. Some­
+times the market conditions create a discount situation, and sometimes a large 
+dividend gives rise to a discount. Since the stock price is almost invariably 
+reduced by the amount of the dividend, the option price is also most likely 
+reduced after the ex-dividend. Since the holder of a listed option does not receive 
+the dividend, he may decide to sell the option in the secondary market before the 
+ex-date in anticipation of the drop in price. If enough calls are sold because of 
+the impending ex-dividend reduction, the option may come to parity or even to a 
+discount. Once again, the arbitrageurs may move in to take advantage of the sit­
+uation by buying these calls and exercising them. 
+If assigned prior to the ex-date, the writer does not receive the dividend for he 
+no longer owns the stock on the ex-date. Furthermore, if he receives an assignment 
+notice on the ex-date, he must deliver the stock with the dividend. It is therefore very 
+important for the writer to watch for discount situations on the day prior to the ex­
+date.