Add training workflow, datasets, and runbook

training_data/relevant/text/d00f7cc4d886a5781360bbae329482a17c42a5d3975a6f26eca73acc68dd5422.txt

@@ -0,0 +1,36 @@
+O.,ter 15: Put Option Basics 
+POSITION LIMITS 
+253 
+Recall that the position limit rule states that one cannot have a position of more than 
+the limit of options on the same side of the market in the same underlying security. 
+The limit varies depending on the trading activity and volatility of the underlying stock 
+and is set by the exchange on which the options are traded. The actual limits are 
+13,500, 22,500, 31,500, 60,000, or 75,000 contracts, depending on these factors. One 
+cannot have more than 75,000 option contracts on the bullish side of the market - long 
+calls and/or short puts - nor can he have more than 75,000 contracts on the bearish 
+side of the market - short calls and/or long puts. He may, however, have 75,000 con­
+tracts on each side of the market; he could simultaneously be long 75,000 calls and 
+long 75,000 puts. 
+For the following examples, assume that one is concerned with an underlying 
+stock whose position limit is 75,000 contracts. 
+Long 75,000 calls, long 75,000 puts - no violation; 75,000 contracts bullish (long 
+calls) and 75,000 contracts bearish (long puts). 
+Long 38,000 calls, short 37,000 puts - no violation; total of 75,000 contracts bullish. 
+Long 38,000 calls, short 38,000 puts - violation; total of 76,000 contracts bullish. 
+Money managers should be aware that these position limits apply to all "related" 
+accounts, so that someone managing several accounts must total all the accounts' 
+positions when considering the position limit rule. 
+CONVERSION 
+Many of the relationships between call prices and put prices relate to a process 
+known as a conversion. This term dates back to the over-the-counter option days 
+when a dealer who owned a put ( or could buy one) was able to satisfy the needs of a 
+potential call buyer by "converting" the put to a call. This terminology is somewhat 
+confusing, and the actual position that the dealer would take is little more than an 
+arbitrage position. In the listed market, arbitrageurs and firm traders can set up the 
+same position that the converter did. 
+The actual details of the conversion process, which must include the carrying 
+cost of owning stock and the inclusion of all dividends to be paid by the stock during 
+the time the position is held, are described later. However, it is important for the put 
+option trader to understand what the arbitrageur is attempting to do in order for him 
+to fully understand the relationship between put and call prices in the listed option 
+market.