Commodity Trading Advisors

TRADING STRATEGY
The program only trades financial futures, with a focus on the S&P 500 futures contract and options on that contract. The Advisor uses a systematic approach to futures trading which emphasizes making a technically correct buy or sell of the S&P 500 stock index future. The Advisor uses several proprietary technical tools to determine long term support and resistance price levels on the S&P 500 futures contract. These price levels are what the Advisor calls Pivot Points. It is the expectation of the Advisor that the index will either reverse its trend at a Pivot Point or, at a minimum, see short term stagnation in price movement. The Advisor sells naked put and call options against Pivot Points on the S&P index. Most of the options that are sold by the Advisor expire worthless at expiration because the options that the Advisor sells are generally significantly out of the money. In the event that the market closes above or below a Pivot Point and the futures contract is actually put to the account or called away from the account, the Advisor will then utilize the same technical tools to determine logical profit objectives and buy or sell stop placement on the contracts that were delivered to the account. By selling options at a predetermined price level the Advisor is assured of entering or exiting a trade at the most technically advantageous level. This methodology for trading ensures that the client will be buying or selling the S&P 500 contract at a technically and historically advantageous long term support or resistance area. The Advisor may leg into a trade. This means that the timing of selling a put option may not be the best time to sell a call option based upon market technicals. Time of entry into a trade is one of the most important elements of the trade decision. The Advisor will generally seek to sell options after large momentum days that have high volatility and broad price ranges.

TRADING STYLE: Systematic / option writing / indices