-The "Index Options" program uses a systematic approach to trading and relies heavily on a program of selling or "writing" out of the money options on the S&P 500 futures contract. The options will generally expire in 35 days or less. The implementation of the program each month depends on two formulas. They determine the strike prices of the initial option positions. Option contracts are written at a sufficient distance out of the money, to allow in most cases, for the options to expire worthless. From time to time, options may be purchased on the S&P 500 futures contract to reduce risk.