ACE Strategies

Aggressive Stock Index Premium Collection (ASIPC).

The objective of this strategy is to achieve returns superior to those of the core SIPC strategy, primarily by exploiting rising volatility levels, when they occur, in a more aggressive way. This strategy uses all the basics of the core SIPC system, selling put and call options on the S&P 500 future to collect premiums (a complete description of that strategy appears in detail beginning on page 3). ASIPC will differ from the "core" mainly in that it will, at opportune times, and with suitable moderation, select option strike prices closer to the market in order to collect higher premiums and improve performance. An added risk in this approach is the degree to which the market is more likely to impend on strike prices. Offsetting that risk is the experienced judgment of the Advisor, his ability to make quick decisions and to execute them in the interest of capitalizing on an opportunity by hedging (taking a long or short position in the underlying futures contract) or trading out of the potential trouble. The plan is to trade in a more aggressive way only when volatility and other market conditions are optimum. Adequate market volatility is essential to the success of the strategy. Volatility on the S&P 500 index has been through a long, and steady decline which, in February and July, 2005 reached low levels not seen in more than ten years. Since then market volatility has successfully rested the July lows and is resolving at higher levels much more conducive to this strategy. The Advisor retains the discretion to mix and match elements of other strategies or new elements, as market conditions require. Appropriate participants for this strategy will be experienced investors who will have the staying power (both psychologically and monetarily) to execute this strategy for the long-term. A minimum of 18 months should be allowed to evaluate performance. Investors should have sufficient risk capital to meet the starting minimums stated below.

Aggressive Stock Index Premium Collection Strategy - Minimum Starting Value Required*
Regular Program $100,000
Institutional Program $250,000

Lesser amounts may be accepted solely at the discretion of the Advisor.
*Stated minimums are net of any front-end fees.

THERE IS SUBSTANTIAL RISK OF LOSS IN TRADING FUTURES AND OPTIONS.  ONE MUST BE AWARE THAT THE POSSIBILITY OF UNLIMITED LOSS EXISTS IN WRITING OPTIONS.  PEOPLE CAN AND DO LOSE MONEY.