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Suggested Stop

In situations where the market does not move in our favor, we can prevent substantial losses by the use of stop losses. We will close out a position and take a loss when a trade was initiated in accordance with our signal but the value of the short option increased rather than decreased, reaching our "Suggested Stop-Loss Level".

We do not always provide "Suggested Stop-Loss Levels" at the same time we issue a signal. We may instead:

• Issue a "Suggested Stop-Loss Level" at a later time, once a short option position has already been taken;

• Provide a new "Suggested Stop-Loss Level", replacing the one previously issued;

• Not issue a "Suggested Stop-Loss Level" at all.

Uncovered SPY Options Signals Past 6 Months +451% -12% Our Signals Buy & Hold

As of 7/4/2008

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