Options on Futures Program

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Options on Futures Program
Acuvest
Trading in futures and options involves a high
degree of risk and is not suitable for everyone.

• Acuvest

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The Option Strategy

• This program is designed to capitalize on the
  probability that 97 of Out-of-the-Money Options
  will eventually expire worthless.
• In selling these options, our goal is to retain
  a percentage of the premiums collected.

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The Option Strategy

• The side of an options transaction preferred by
  most investors is the purchase side and therefore
  an artificial inflation of premium usually
  occurs.

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The Option Strategy

• Our strategy is to take advantage of the inflated
  premiums and effect the sale of out-of-the-money
  Put and/or Call options.

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The Option Strategy

• As or if the market begins to approach the strike
  price of either the put or call, the continual
  loss of time on both options can provide some
  offsetting protection from loss to allow
  liquidations of the positions, or employment of
  additional strategies.

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The Option Strategy

• There is greater risk in the sale of options than
  there is in the purchase, therefore a program of
  collecting premiums through the use of these
  spread transactions must be professionally
  managed.

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The Option Strategy

• We at Acuvest, with over forty years experience
  in futures and options, believe we have the
  experience to properly manage this strategy.
  Further information available upon request or
  visit www.acuvest.com.

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The Program Manager

• John Caiazzo, International Market
  Strategist, has over 40 years experience at
  major U.S. Brokerage firms as Manager and
  Director of various International
  Divisions and is the founder of several
  trading and brokerage firms.

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The Program Manager

• John started his career in 1959 at the New
  York Stock Exchange but was soon recruited by
  Hayden, Stone Co., a 100 year old stock and
  commodities firm.
• He worked his way up to be Manager of their
  International division with 16 foreign
  branches and over 35 salesmen.

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Program Manager

• Mr. Caiazzo was a floor trader at the
  Commodity Exchange at the World Trade Center in
  New York in the early 1980s. 
• John moved to California in 1994 and acted as a
  consultant to various West Coast commodity firms.
  He formed Acuvest in 1999 and began the Acuvest
  Managed Options Program in 2002.

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Technical Analysis/ Timing

• Technicians and Market Timers believe they
  can spot key levels in a market and minimize
  losses by getting in and out of
  positions, before profits erode.
• They rely heavily on technical signals,
  such as whether stocks are trading near
  their lows or an index sinks beneath a
  longer interval moving average.

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Technical Analysis/ Timing

• The Acuvest Managed Options program employs both
  the use of Technical Analysis and Market
  Timing before a position is taken.
• This combination of analyses has proven to be
  an integral tool when trying to determine the
  potential of profitability and risk in trading
  Out-of-the-Money options.

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Financial Markets

• Markets That Currently Present the Most
  Opportunity to Write Options
• Financial Futures- SP , Russell 1000, Russell
  2000
• Interest Rate Futures- 30 Year Bonds

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Market Analysis

• The process leading to the writing of a Put
  and/or Call involves not only Technical
  Analysis and Market Timing, but also the
  assessment of Option Premiums and Time Value
  which is crucial when analyzing a potential
  opportunity.

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Market Analysis

• Therefore the decision to write a
  Put or Call is driven by
• How far the position is Out-of-the-Money,
  how much time remaining to expiration,-Not-How
  Much Premium is Collected!

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Risk Management

• All trades are closely managed with draw downs
  typically limited to 5-10 of the account
  balance.
• Margin Excess is computed daily and maintained at
  or near 40-60 of total account equity.

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Disclosure Statement

• Trading in futures and options involves a high
  degree of risk and is not suitable for all
  investors. Also, past performance may not be an
  indication of future results. Please visit
  www.acuvest.com or call 951-693-9600 for
  additional information.