Add training workflow, datasets, and runbook

training_data/relevant/text/61b15fdc2cd99e5c58664803feac37d11c2b9cbbcc9baa1473c1b43e2b7cd641.txt

@@ -0,0 +1,38 @@
+400 Part Ill: Put Option Strategies 
+The overriding reason that most strategists sell naked calls is to collect the time 
+premium before the stock can rise above the striking price. These strategists gener­
+ally have an opinion about the stock's direction, believing that it is perhaps trapped 
+in a trading range or even headed lower over the short term. This strategy does not 
+lend itself well to using LEAPS, since it would be difficult to project that the stock 
+would remain below the strike for so long a period of time. 
+Short LEAPS Instead of Short Stock. Another reason that naked calls are 
+sold is as a strategy akin to shorting the common stock. In this case, in-the-money 
+calls are sold. The advantages are threefold: 
+l. The amount of collateral required to sell the call is less than that required to sell 
+stock short. 
+2. One does not have to borrow an option in order to sell it short, although one must 
+borrow common stock in order to sell it short. 
+3. An uptick is not required to sell the option, but one is required in order to sell 
+stock short. 
+For these reasons, one might opt to sell an in-the-money call instead of shorting 
+stock. 
+The profit potentials of the two strategies are different. The short seller of stock 
+has a very large profit potential if the stock declines substantially, while the seller of 
+an in-the-money call can collect only the call premium no matter how far the stock 
+drops. Moreover, the call's price decline will slow as the stock nears the strike. 
+Another way to express this is to say that the delta of the call shrinks from a number 
+close to l (which means the call mirrors stock movements closely) to something more 
+like 0.50 at the strike (which means that the call is only declining half as quickly as 
+the stock). 
+Another problem that may occur for the call seller is early assignment, a topic 
+that is addressed shortly. One should not attempt this strategy if the underlying stock 
+is not borrowable for ordinary short sales. If the underlying stock is not available for 
+borrowing, it generally means that extraneous forces are at work; perhaps there is a 
+tender offer or exchange offer going on, or some form of convertible arbitrage is tak­
+ing place. In any case, if the underlying stock is not borrowable, one should not be 
+deluded into thinking that he can sell an in-the-money call instead and have a worry­
+free position. In these cases, the call will normally have little or no time premium and 
+may be subject to early assignment. If such assignment does occur, the strategist will 
+become short the stock and, since it is not borrowable, will have to cover the stock. 
+At the least, he will cost himself some commissions by this unprofitable strategy; and 
+at worst, he will have to pay a higher price to buy back the stock as well.