Summary

DISCRETIONARY MANAGEMENT ACCOUNT PROGRAM – INSTITUTIONAL The Discretionary Management Account Program – Institutional may take positions in all market sectors at any given time. The program will also sell “covered” options. A “covered” option is an option with a predefined loss limit. Specifically, the strategy consists of selling one option position while simultaneously buying another option position with a net credit inflow of premium. The strategy is executed both on the call side of the market through the sale of call credit spreads and on the put side of the market through the sale of put credit spreads. The investor profits when the market price of underlying futures contracts stays below sold call strike prices and above sold put strike prices. The investor incurs a loss when unexpected price movements breach or approach the strike prices of sold options. Market sectors traded include: Equity Indices, Metals, Energy, Currency, Agriculture, Softs, and Interest Rates. Multiple positions in any given sector or market may be established. The program accepts a minimum account size of $100,000, or lesser amounts as accepted at the discretion of the Advisor. The Advisor recommends that commission rates not exceed $10 per round-turn.