Add training workflow, datasets, and runbook

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Chapter 9: Calendar Spreads
FIGURE 9-1.
Calendar spread at near-term expiration.
C:
i +$200
$
1i:i
~
0
~ o. -$300
Stock Price at Expiration
TABLE 9-1.
Estimated profit or losses at April expiration.
XYZ Stock April 50 April 50 July 50
Price Price Profit Price
40 0 +$500 1/2
45 0 + 500 21/2
48 0 + 500 4
50 0 + 500 5
52 2 + 300 6
55 5 0 8
60 10 - 500 l 01/2
193
July 50 Total
Profit Profit
-$750 -$250
- 550 - 50
- 400 + 100
- 300 + 200
- 200 + 100
0 0
+ 250 - 250
of the remaining long call at expiration, as well as a function of the time remaining to
near-term expiration.
Table 9-1 and Figure 9-1 clearly depict several of the more significant aspects
of the calendar spread. There is a range within which the spread is profitable at near­
term expiration. That range would appear to be about 46 to 55 in the example.
Outside that range, losses can occur, but they are limited to the amount of the initial
debit. Notice in the example that the stock would have to be well below 40 or well