The calendar spread is a neutral strategy: it profits if the stock remains range-bound. To create a calendar spread with calls, we write a call with a certain strike price (in my example, K = 20) and buy a call with the same exercise price but a LONGER maturity (in my example, we buy a call with a one year maturity, compared to the three-month maturity of the written call).
David's XLS is here: https://www.dropbox.com/s/0hn37fqqq6qqrvn/102518-calendar-butterfly-combo.xlsx
David's XLS is here: https://www.dropbox.com/s/0hn37fqqq6qqrvn/102518-calendar-butterfly-combo.xlsx
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