Add training workflow, datasets, and runbook

training_data/relevant/text/52f5174db611a0bcc8fcc470a46ee49f9afd9e13748ce5baca51e8a3a664fe29.txt

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+O,apter 31: Index Spreading 585 
+still make money, even if he was wrong in his prediction of the relationship of the 
+cash indices. 
+Example: The following prices exist: 
+ZYX: 175.00 
+UVX: 150.00 
+ZYX Dec 185 put: 10½ 
+UVX Dec 140 call: 11 
+Suppose that one wants to buy the UVX index and sell the ZYX index. He 
+expects the spread between the two - currently at 25 points - to narrow. He could 
+buy the UVX futures and sell the ZYX futures. However, suppose that instead he buys 
+the ZYX put and buys the UVX call. 
+The time value of the Dec 185 put is 1/2 point and that of the Dec 140 call is 1 
+point. This is a relatively small amount of time value premium. Therefore, the com­
+bination would have results very nearly the same as the futures spread, as long as 
+both options remain in-the-money; the only difference would be that the futures 
+spread would outperform by the amount of the time premium paid. 
+Even though he pays some time value premium for this long option combina­
+tion, the investor has the opportunity to make larger profits than he would with the 
+futures spread. In fact, he could even make a profit if the cash spread widens, if the 
+indices are volatile. To see this, suppose that after a large upward move by the over­
+all market, the following prices exist: 
+ZYX: 200.00 
+UVX: 170.00 
+ZYX Dec 185 put: 0 ( virtually worthless) 
+UVX Dec 140 call: 30 
+The combination that was originally purchased for 21 ½ points is now worth 30, 
+so the spread has made money. But observe what has happened to the cash spread: 
+It has widened to 30 points, from the original price of 25. This is a movement in the 
+opposite direction from what was desired, yet the option position still made money. 
+The reason that the option combination in the example was able to make 
+money, even though the cash spread moved unfavorably, is because both indices rose 
+so much in price. The puts that were owned eventually became worthless, but the 
+long call continued to make money as the market rose. This is a situation that is very 
+similar to owning a long strangle (long put and call with different strikes), except that