Strategy. The Fund uses a variety of options strategies to obtain exposure to the S&P 500 Index, its primary benchmark, or other broad-based equity market indices through investments in a variety of financial instruments, including but not limited to index derivatives, options, exchange-traded funds (ETFs), and futures and forward contracts. These option strategies are: 1. Buying puts. A put option for a particular security gives the purchaser the right to sell the security at the stated exercise price at the expiration date of the option, regardless of the market price of the security. 2. Buying a put spread. A put spread is achieved by purchasing put options at a specific strike price while also selling the same number of puts at … Show more… The Fund uses a variety of options strategies to obtain exposure to the S&P 500 Index, its primary benchmark, or other broad-based equity market indices through investments in a variety of financial instruments, including but not limited to index derivatives, options, exchange-traded funds (ETFs), and futures and forward contracts. These option strategies are: 1. Buying puts. A put option for a particular security gives the purchaser the right to sell the security at the stated exercise price at the expiration date of the option, regardless of the market price of the security. 2. Buying a put spread. A put spread is achieved by purchasing put options at a specific strike price while also selling the same number of puts at a lower strike price. The maximum profit to be gained using this strategy is equal to the difference between the two strike prices, minus the net cost of the options. 3. A put spread collar. A put spread collar is achieved by purchasing a put spread (see No. 2 above) and then selling a fully covered call option to help offset the premium spent to buy the put spread. It is designed to protect an investor who is long the underlying asset from a falling stock price. 4. A collar strategy. A collar is a type of options trading strategy which consists of selling an out of the money call option and buying an out of the money put spread option (see No. 1 above). It is designed to protect an investor who is long the underlying asset from a falling stock price. The Adviser determines which of these strategies to employ by analyzing the current levels of market volatility as expressed by the VIX and Skew. The VIX is the Chicago Board of Options Exchange Volatility Index. The VIX Index is a financial benchmark designed to be an up-to-the-minute market estimate of the expected volatility of the S&P 500 Index and is calculated by using the midpoint of the real-time S&P 500 Index (SPX) option bid/ask quotes. The Skew is maintained by Credit Suisse and published daily under the name Credit Suisse Fear Barometer. The Skew measures the difference in implied volatility between out-of-the-money options and in-the-money options. Option market skew is the difference in price between a call option and a put option that are equidistant from the stock price. Skew is used to help the Adviser determine the most historically efficient way of effecting a hedge on the Funds portfolio. Show less