Summary

Harbor Financial, LLC, seeks to achieve capital appreciation by engaging in a program of premium collection, by selling or writing options spreads on stock index futures traded on the Chicago Mercantile Exchange. An options spread consists of the simultaneous sale and purchase of options of different exercise prices and/or expiration months. In a spread, the purchased option acts as a hedge or protection against a sudden increase in the value of the sold option. This technique profits as the sold option’s value declines over time. Profit is captured when sold options are repurchased at a reduced value, or when they expire worthless, allowing the investor, to retain the original sales proceeds.