This Program engages primarily on the "selling" or "writing" of options (puts and calls) on futures
contracts in a diversified market portfolio. Currently, the targeted markets are: Crude Oil, Corn, Treasury
Bonds, Euro Currencies and Gold. However in the future, WhiteRiverGroup (WRG) may also trade a
broader portfolio of commodity markets.
On some occasions, the Diversified Option Writing Strategy program may also trade commodity futures
outright. Many times the futures position will be initiated through the assignment or delivery of the
underlying commodity futures of an option. For instance, if WhiteRiverGroup thinks that Gold futures prices are overbought and will decrease in value, WRG may choose to sell a call option on the gold
futures contract with a strike price relatively close to the current gold futures price. If the gold option
expires in-the-money, the underlying futures contract will be delivered and a short futures position will be
held by the WRG client.
The Advisor reserves the right to maintain significant amounts in cash, particularly when the Advisor believes a client account should follow a temporary defensive posture, or when the Advisor determines that opportunities for investing are unattractive.
Due to the volatile nature of futures contracts, the Advisor intends to adhere to strict money management
principles to increase the opportunity for long-term success of each trading program. Position exposure
and the potential percentage loss that a client's portfolio may incur in unfavorable market moves are
continuously monitored. The Advisor reserves the right to modify the investment process as market