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Program Description:
Stock Index Option Writing
Strategy
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The Stock Index Option Writing
Strategy writes call and put
options on index futures (primarily
on the S&P index but occasionally
also on other indices). The
strategy is designed to capture
the decay of option premiums.
The program sells deep out of
the money options after unusual
stock market movements. Option
contracts are written at a sufficient
distance, to allow in most cases,
for the options to expire worthless.
Primarily uncovered or naked
options are sold (although spreads
are utilized at times). White
River Group may also take outright
positions in the underlying
futures contract. The trading
strategy is mostly discretionary.
Both fundamental and technical
analysis is incorporated into
the trading decision.
Program Description: Diversified
Option Writing Strategy
The Diversified Option Writing
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, White River Group
may also trade a broader portfolio
of commodity markets.
On some occasions, the Diversified
Option Writing Strategy program
may also trade commodity futures
contracts 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 White River
Group thinks that Gold futures
prices are overbought and will
decrease in value, it 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 White River
Group client.
The advisor’s trading
strategy is discretionary. Although
technical analysis goes into
defining trading strategy, it
is not the sole defining factor.
Fundamental factors, including
inflation view and economic
indicators, are also taken into
account.
Due to the volatile nature of
futures contracts, White River
Group 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.
White River Group reserves the
right to modify the investment
process as market conditions
require.
White River Group 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.
Management Information: Andreas
Diessbacher
White River Group’s Principal,
Andreas Diessbacher, is solely
responsible for managing the
day to day operations, as well
as its trading strategy and
trade execution. Andreas Diessbacher
is currently registered as an
Associated Person of Andreas
Diessbacher (sole proprietorship),
a commodity brokerage firm.
Andreas Diessbacher became
registered with the CFTC as
an associated person of Professional
Market Brokerage Inc, a Future
Commission Merchant (FCM), in
April 1999. During his employment
he established and managed a
trading desk supporting German
speaking clients. In November
of 2001, Refco LLC (FCM) acquired
the business of Professional
Market Brokerage Inc and Andreas
Diessbacher became an Associated
Person with Refco LLC. He continued
to manage a trading desk and
introduced Foreign Exchange
Trading to existing clients
and Introducing Brokers (IB).
In November 2001, Andreas
Diessbacher also registered
as an Associated Person with
Marblehead Financial Group Inc.,
a Commodity Trading Advisor
(CTA). He had no duties while
being registered with Marblehead
Financial Group Inc. Refco LLC
was purchased in November 2005
by Man Financial, Inc., at which
point Andreas Diessbacher became
an Associate Person of Man Financial,
Inc. (FCM). While at Man Financial
Inc. he served as a liaison
for Introducing Brokers (IB)
and started trading customer
accounts. In January 2007, Andreas
Diessbacher deregistered his
Associated Person status with
Marblehead Financial Group Inc.
In July 2007, Man Financial
was spun off by its parent company
Man Group, Inc (a UK based hedge
fund) and made an initial
public offering on the New York
Stock Exchange as MF Global
(NYSE Listed MF). His function
at MF Global Inc. remained unchanged
to his duties at Man Financial
Inc. In April 2011, Andreas
Diessbacher left MF Global Inc.
to form Andreas Diessbacher
(sole proprietorship), a Guaranteed
Introducing Broker of MF Global
Inc. Andreas Diessbacher became
listed as a Principal and registered
as an Associated Person of Andreas
Diessbacher (sole proprietorship)
in April 2011. As a Guaranteed
Introducing Broker of MF Global
Inc., Andreas Diessbacher continued
to introduce and service customer
accounts with MF Global Inc.
In November 2011, Andreas Diessbacher
(sole proprietorship) ceased
to be a Guaranteed Introducing
Broker of MF Global Inc. and
became a Guaranteed Introducing
Broker for RJ O’Brien
Associates LLC. Andreas Diessbacher
introduces and services customer
accounts with RJ O’Brien
Associates LLC.
Andreas Diessbacher graduated
from the University of Coventry
(United Kingdom) with a Bachelor
of Arts in Business Studies,
with Honors, in 1998 and from
Fachhochschule Aachen (Germany)
with a Diplom Betriebswirt (FH)
in 1998.
The descriptions above are from
the manager’s disclosure
document.
THE RISK OF LOSS IN TRADING
FUTURES, OPTIONS AND OFF-EXCHANGE
FOREX CAN BE SUBSTANTIAL.
PAST RESULTS ARE NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS.
PLEASE READ THE CTA'S RISK
DISCLOSURE DOCUMENT CAREFULLY
BEFORE INVESTING MONEY.
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