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A calendar (intra-commodity) spread involves opposite positions in different delivery months of the same commodity. Long nearby/short deferred vs. long deferred/short nearby must be tracked in differential terms. Here the trader is long December and short July—long deferred/short nearby. Profit occurs if December strengthens relative to July, i.e., the Dec–Jul differential narrows (less carry) or even inverts. Seasonal storage, carrying charges, and supply expectations drive spread behavior. If carry widens (B), the deferred month weakens relative to nearby from the long-deferred perspective, producing losses. If both months move equally (C), the spread P&L is near zero (ignoring margining). If July outperforms (D), the short leg loses more than the long gains. Series 3 emphasizes recognizing whether a spread is bullish or bearish on the forward curve: long-deferred/short-nearby is typically bullish carry compression (anticipating tighter later supplies or lower storage/financing), whereas long-nearby/short-deferred benefits from carry expansion. Margin requirements for calendar spreads are often reduced due to correlation, but risk is real.