Add training workflow, datasets, and runbook

training_data/relevant/text/e3c9b7395bf5b85c30b6db8e7c3d6f7d89e84728ebede661f852d3118afb9a26.txt

@@ -0,0 +1,35 @@
+G,pter 16: Put Option Buying 259 
+ly, the percentage returns from having purchased a cheaper, out-of-the-money put 
+will be greater. However, should the underlying stock decline only moderately in 
+price, the in-the-rrwney put will often prove to be the better choice. In fact, since a 
+put option tends to lose its time value premium quickly as it becomes an in-the­
+money option, there is an even greater advantage to the purchase of the in-the­
+money put. 
+Example: XYZ is at 49 and the following prices exist: 
+XYZ, 49; 
+XYZ July 45 put, l; and 
+XYZ July 50 put, 3. 
+If the underlying stock were to drop to 40 by expiration, the July 45 put would be 
+worth 5 points, a 400% profit. The July 50 put would be worth 10 points, a 233% 
+profit over its initial purchase price of 3. Thus, in a substantial downward move, the 
+out-of-the-money put purchase provides higher reward potential. However, if the 
+underlying stock drops only moderately, say to t:15, the purchaser of the July 45 put 
+would lose his entire investment, since the put would be worthless at expiration. The 
+purchaser of the in-the-money July 50 put would have a 2-point profit with XYZ at 
+45 at expiration. 
+The preceding analysis is based on holding the put until expiration. For the 
+option buyer, this is generally an erroneous form of analysis, because the buyer 
+generally tends to liquidate his option purchase in advance of expiration. When 
+considering what happens to the put option in advance of expiration, it is helpful to 
+remember that an in-the-money put tends to lose its time premium rather quickly. 
+In the example above, the July 45 put is completely composed of time value pre­
+mium. If the underlying stock begins to drop below 45, the price of the put will not 
+increase as rapidly as would the price of a call that is going into-the-money. 
+Example: If XYZ fell by 5 points to 44, definitely a move in the put buyer's favor, he 
+may fmd that the July 45 put has increased in value only to 2 or 2½ points. This is 
+somewhat disappointing because, with call options, one would expect to do signifi­
+cantly better on a 5-point stock movement in his favor. Thus, when purchasing put 
+options for speculation, it is generally best to concentrate on in-the-rrwney puts unless 
+a very substantial decline in the price of the underlying stock is anticipated. 
+Once the put option is in-the-money, the time value premium will decrease 
+even in the longer-term series. Since this time premium is small in all series, the put