The MODIFIED DIVERSIFIED OPTION WRITING Program is very similar to the Diversified Option Writing Strategy. One of the major differences is the number of short options which the Advisor will sell for a particular market. Some FCMs not only control the margin requirement of each account but also have a risk department which might issue risk calls. A risk call will be issued by a FCM if the FCM is not comfortable to have a certain amount of short options open. For example, some FCMs might limit the amount of short Euro currency futures puts because they worry about the development in Europe. Other FCMs might want to limit the amount of short Crude calls because of potential problems in the Middle East. This program is for clients who chose to clear their trades through a FCM which might issue risk calls and limit the number of short options for a particular market.
Since the Advisor is limited in the number of short options in a particular market, the Advisor might choose to sell more options in a different market. Therefore the trading results might be totally different to the Diversified Option Writing Strategy. The basic strategy is the same but the number of options and the markets traded might be totally different.