P. Silverman & Co. (PSC

Theta Stock Index Inst'l)

Fund Investment Objectives

The PSC THETA STOCK INDEX STRATEGY INSTITUTIONAL creates put and call option credit spreads with differing strike prices and expiration dates. Using the S&P 500 futures contracts, the program may profit from price differences between the long and short options due to the: 1) Volatility Inherent in the market; 2) The spread between the market and option strike prices; 3) The decrease in the time to expiration of the options. The CTA purchases out of the money puts with differing strike prices to hedge the downside risk associated with extreme downward events in the market, significant increases in volatility, and to take advantage of time premium decay. Losses can and do occur.