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+708 Part V: Index Options and Futures 
+ably, the calendar spread will almost certainly lose money (points on the left-hand 
+side of the figure, or top line of the table). 
+Third, if March futures rise in price too far, the calendar spread could do poor­
+ly. In fact, if March futures rally and the futures spread worsens, one could lose more 
+than his initial debit (bottom left-hand point on figure). This is partly due to the fact 
+that one is buying the March options back at a loss if March futures rally, and may 
+also be forced to sell his May options out at a loss if May futures have fallen at the 
+same time. 
+Fourth, as might be expected, the best results are obtained if March futures 
+rally slightly or remain unchanged and the futures spread also remains relatively 
+unchanged (points in the upper right-hand quadrant of the figure). 
+In Table 35-4, the far right-hand column shows how a futures spreader would 
+have fared if he had bought May and sold March at 4 points May over March, not 
+using any options at all. 
+TABLE 35-4. 
+Profit and loss from soybean call calendar. 
+All Prices at March Option Expiration 
+Futures Future 
+Spread Calendar Spread Profit Spread 
+(May-March) March Future Price: 574 584 594 604 614 Profit 
+-24 -5.5 - 4.5 -3 -4.5 -11.5 -28 
+-14 -4.5 3 -0.5 -1 -7 -18 
+-4 -2.5 0 +3 +3.5 -1 - 8 
+6 0 + 3 +7.5 +9 +5.5 + 2 
+16 +7 + 11 +17 +19 +13 +12 
+This example demonstrates just how powerful the influence of the futures 
+spread is. The calendar spread profit is predominantly a function of the futures 
+spread price. Thus, even though the calendar spread was attractive from the theo­
+retical viewpoint of the option's prices, its result does not seem to reflect that theo­
+retical advantage, due to the influence of the futures spread. Another important 
+point for the calendar spreader used to dealing with stock options to remember is 
+that one can lose more than his initial debit in a futures calendar spread if the spread 
+between the underlying futures inverts. 
+There is another way to view a calendar spread in futures options, however, and 
+that is as a substitute or alternative to an intramarket spread in the futures contracts 
+themselves. Look at Table 35-4 again and notice the far right-hand column. This is