Summary

-Steadfast Resource Associates (?SRA?) attempts to profit from underlying index movements as well as time decay by selling out of the money options and option spreads on the Samp;amp;P 500 Index.amp;nbsp; Steadfast implements a unique analysis technique that studies numerous technical factors in the underlying index and it?s volatility on multiple time frames.amp;nbsp; The output of this analysis determines the overall trend and its current strength.amp;nbsp; When the output is indicating overbought conditions SRA will sell calls and call spreads on the index.amp;nbsp; Likewise, when the output is indicating oversold conditions SRA will sell puts and/or put spreads on the index.amp;nbsp; On average trades are only held for four and a half days. amp;nbsp; Due to the poor performance in January 2008 SRA has implemented a hedging technique for short put positions.amp;nbsp; SRA has defined specific technical criteria that, in the past, have preceded outsized negative market moves.amp;nbsp; Once a predetermined number of these criteria have been met, SRA will purchase put options above the strike prices of its current short put positions.amp;nbsp; While there is no guarantee that this technique will be successful in the future, there is a possibility that it may mitigate future losses.amp;nbsp; While losses have a chance of being mitigated, at times, this technique may also cause losses to be locked in, as was the case during the month of June 2008 with a number of short put positions held that month.amp;nbsp;