Add training workflow, datasets, and runbook

training_data/relevant/text/8700531782bcb96308878b90e1b2a7dd47415a8c888c830cc5fc7264c49fecf7.txt

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+· GHAR:f ER :8'7 . . -
+How Volatility Affects 
+Popular Strategies 
+The previous chapter addressed the calculation or interpretation of implied volatili­
+ty, and how to relate it to historic volatility. Another, related topic that is important is 
+how implied volatility affects a specific option strategy. Simplistically, one might think 
+that the effect of a change in implied volatility on an option position would be a sim­
+ple matter to discern; but in reality, most traders don't have a complete grasp of the 
+ways that volatility affects option positions. In some cases, especially option spreads 
+or more complex positions, one may not have an intuitive "picture" of how his posi­
+tion is going to be affected by a change in implied volatility. In this chapter, we'll 
+attempt a relatively thorough review of how implied volatility changes affect most of 
+the popular option strategies. 
+There are ways to use computer analysis to "draw" a picture of this volatiiity 
+effect, of course, and that will be discussed momentarily. But an option strategist 
+should have some idea of the general changes that a position will undergo if implied 
+volatility changes. Before getting into the individual strategies, it is important that 
+one understands some of the basics of the effect of volatility on an option's price. 
+VEGA 
+Technically speaking, the term that one uses to quantify the impact of volatility 
+changes on the price of an option is called the vega of the option. In this chapter, the 
+references will be to vega, but the emphasis here is on practicality, so the descriptions 
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