Monthly Performance

Period Returns

Strategy Description

The Trading Program offered by OptHedge Advisors LLC (the Advisor) focuses on identifying markets in which volatility skew opportunities potentially exist whereby the Advisor may attempt to purchase certain option contracts that may be trading at a low level of implied volatility and sell other option contracts that may be trading at a high level of implied volatility for the same underlying futures product. For example, the Advisor may seek to sell call and/or put options for a given futures product at certain selected strike prices and/or expiration months while simultaneously buying call and/or put options for that same futures product at certain selected strike prices and/or expiration months that may be different than for the options that are selected by the Advisor to be sold. Please note that the performance shown for this Trading Program from October 2008 through September 2010 is the proprietary trading performance of the Advisor's sole principal, Coby M. Hyman, and such performance has been pro forma adjusted to account for the maximum management and incentive fees that may be charged by the Advisor. The Advisor began directing client accounts in October 2010. The performance shown starting in October 2010 is the actual trading performance of client accounts trading pursuant to the Trading Program, net of all fees actually charged to such client accounts by the Advisor. The performance shown reflects the weighted average performance of all client accounts that have historically been traded by the Advisor pursuant to the Trading Program and does not reflect the actual performance of any one specific client account. The performance shown only reflects the performance of client accounts that were traded by the Advisor for the entire portion of each month for which performance is shown.

The Advisor frequently trades options on various futures and commodities contracts and specializes in establishing dynamically hedged positions in various futures products by simultaneously employing the following combinations of strategies: 1) writing call and/or put options that are trading at prices that reflect a high level of implied volatility, 2) purchasing call and/or put options that are trading at prices that reflect a low level of implied volatility, and 3) making appropriate adjustments to such positions based on movements in the underlying futures and commodities contracts. Tactical options trades (such as delta neutral positions, calendar spreads, and volatility skew spreads) may frequently be initiated by the Advisor when utilizing the above described strategy with the expectation of profiting from a change in overall implied volatility and/or the relationship among the implied volatilities of options that have different strike prices and/or different expiration dates for a given commodity or futures product.

The Advisor will attempt to manage risk on positions that may be established utilizing the above described strategy by entering into transactions in futures contracts and/or options on futures contracts that are intended to hedge the overall exposure of a position in a commodity or futures product in a manner that the Advisor believes will maximize the profits and/or minimize the losses that may be associated with anticipated directional price movements in the underlying futures and commodities contracts. However, there is no assurance that the Trading Program will be successful in achieving this goal. The Trading Program offered by the Advisor will be managed by the Advisor in a manner that focuses on diversifying the positions established pursuant to the Trading Program across numerous different futures products in order to minimize the risks that may be associated with an adverse price move in any particular futures product in which a position may be held.