how Constructa calendar spread option?

how Constructa calendar spread option?

I'm trying the online stock trading. I wanted to know the stock market wizards especially in India, the strategy for the construction of extended calendar options. Some hypothetical examples with the exercise of options, resulting the benefits may be given to get the glass of a clear concept. r.ramakrishnan, ahmnedabad 14 January 2009

Calendars extends to earn money by changing the volatility and the passage of time. To build the business, which sells an option and buy a further in time. Sell ​​Jan 95 Put $ 1.45 in February 1995 Place Buy for $ 2.95 The total cost is $ 2.95-$ 1.45 = $ 1.50 maximum benefit is very difficult to calculate by hand. You need a calculator for options. Used to open a simulator. http://www.888options.com/resources/options-positions-simulator.jsp

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