Add training workflow, datasets, and runbook

training_data/relevant/text/a66412a034a8d58ba6967df7b5fe796bb5922c5aeace091cf278a02aaba4a693.txt

@@ -0,0 +1,34 @@
+0.,ter 15: Put Option Basics 251 
+ly sell stock in the open market to offset the purchase that he is forced to make via 
+the put assignment. Finally, he may decide to retain the stock that is delivered to him; 
+he merely keeps the stock in his portfolio. He would, of course, have to pay for ( or 
+margin) the stock if he decides to keep it. 
+The mechanics as to how the put holder wants to deliver the stock and how the 
+put writer wants to receive the stock are relatively simple. Each one merely notifies 
+his brokerage firm of the way in which he wants to operate and, provided that he can 
+meet the margin requirements, the exercise or assignment will be made in the 
+desired manner. 
+ANTICIPATING ASSIGNMENT 
+The writer of a put option can anticipate assignment in the same way that the writer 
+of a call can. When the time value premium of an in-the-money put option disappears, 
+there is a risk of assignment, regardless of the time remaining until expiration. In 
+Chapter 1, a form of arbitrage was described in which market-makers or firm traders, 
+who pay little or no commissions, can take advantage of an in-the-money call selling 
+at a discount to parity. Similarly, there is a method for these traders to take advantage 
+of an in-the-money put selling at a discount to parity. 
+Example: XYZ is at 40 and an XYZ July 50 put is selling for 9¾ a ¼ discount from 
+parity. That is, the option is selling for ¼ point below its intrinsic value. The arbi­
+trageur could take advantage of this situation through the following actions: 
+1. Buy the July put at 9¾. 
+2. Buy XYZ common stock at 40. 
+3. Exercise the put to sell XYZ at 50. 
+The arbitrageur makes 10 points on the stock portion of the transaction, buying the 
+common at 40 and selling it at 50 via exercise of his put. He paid 9¾ for the put 
+option and he loses this entire amount upon exercise. However, his overall profit is 
+thus ¼ point, the amount of the original discount from parity. Since his commission 
+costs are minimal, he can actually make a net profit on this transaction. 
+As was the case with deeply in-the-money calls, this type of arbitrage with 
+deeply in-the-money puts provides a secondary market that might not otherwise 
+exist. It allows the public holder of an in-the-money put to sell his option at a price 
+near its intrinsic value. Without these arbitrageurs, there might not be a reasonable 
+secondary market in which public put holders could liquidate.