Summary

-BADGER INVESTMENT GROUP, LLC - INDEX OPTIONS PROGRAM seeks to achieve its objective primarily by writing short dated index (futures option) credit spreads, with the goal of having them decrease in value. A number of hedging strategies may be deployed at various times in order to reduce the risk of certain positions. Option contracts may be written on one or both sides of the market, depending on a number of factors. Additional hedging strategies were implemented at the beginning of 2005 to reduce potential downside volatility.