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.

 

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.

 

Andreas Diessbacher is solely responsible for managing the day to day operations of White River Group, as well as its trading strategy and trade execution. Mr. Diessbacher is currently registered as an Associated Person of MF Global Inc, a commodity brokerage firm.

 

Mr. Diessbacher became registered with the CFTC as an associated person of Professional Market Brokerage Inc, a Future Commission Merchant (FCM), in November 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 Mr. 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, Mr. 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 Mr. 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, Mr. 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. Mr. Diessbacher is now an Associated Person of MF Global, Inc. Mr. 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.