Summary

The SHORT OPTION TRADING PROGRAM consists primarily of selling options on futures while employing stringent risk management techniques. The purchase and sale of futures in a variety of markets to enhance the option component is common. The Kingdom trading program may be utilized to trade any futures market, including grains, meats, metals, softs, energies, currencies, financials, and indices. Fundamental to the program is an analysis to determine if a market is moving upward, downward or sideways. Once the direction of the market is determined, call or put option strike prices are evaluated with respect to premium, liquidity and technical support or resistance levels. Typically, the program seeks a conservative strike option price that will yield a rate of return of 10% (based on margin requirements) for a 30-day period. Choosing strike prices above or below key support or resistance levels is critically important to the success of the system. Patience in identifying and seeking profit opportunity is of the utmost importance. Identifying exits is a vital component of the trading strategy.