The PHALANX OPTION PREMIUM ACCUMULATION STRATEGY (POPA) collects premiums by writing (selling) options on the S&P 500 index futures contract, though occasionally other indexes may be used. The seller (writer) of an option risks losing the difference between the premium received for the option and the price of the underlying futures contract that the writer may be assigned upon exercise of the option. Theoretically, the risk of loss in an option-selling program is unlimited..A determination, educated by research and technical analysis, is made of the likely market trading range in the short term. Research shows that over the last ten years the S&P 500 Index, in any 30 day period, generally trades within a certain range. Based on that, our strategy seeks to implement the selling of options outside that range on a certain time frame basis. That means that call and/or put options, are sold at different strike prices above and below the anticipated market trading range. Within this range the market can go up or down, or trade flat and the options sold can still expire worthless, to the sellers advantage, at the end of the cycle. Most often, options expire at a loss to the buyer and a gain to the seller. However, there is a risk that the seller will have to repurchase the sold options at a loss or may be assigned a futures position..Options contracts expire monthly near the end of the third week in each month. Advisor may also participate in a various expiration cycles. Trades may be initiated at any propitious time. Positions are often held until then, at which point (and as intended) they may expire with their total value lost. That event maximizes the return for the option pair (known as a "strangle") by retaining all the funds received into the account when the option was initially sold. However, there are times when positions may be bought back (covered) before expiration for several possible reasons. They include, to protect profits, to increase the profit potential for the next cycle by sellers, and to avoid or minimize a likely loss. The cycle is repeated continuously, market conditions permitting..The goal is to achieve a profitable outcome for the client regardless of the direction of the price movement of the underlying index, so long as the index price remains within the range of the strike prices of the options sold. As a consequence, although not guaranteed, we have demonstrated, and continue to believe that profitable situations can be realized both in bear markets, bull markets or, best of all, when markets are mostly moving sequentially up and down within a range..