Strategic Synergy Investments, LLC – “SSI” An Explanation of Core Strategies COMMODITY TRADING INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS

Predicting Market Direction Most investment programs attempt to profit by successfully predicting future price direction of whatever investment instrument is being used. Most investment programs attempt to profit by successfully predicting future price direction of whatever investment instrument is being used. e.g. you buy stock in XYZ because you believe the value of the stock will rise over time e.g. you buy stock in XYZ because you believe the value of the stock will rise over time e.g. you buy gold bullion because you believe that gold will be worth more in two years than it is worth today. e.g. you buy gold bullion because you believe that gold will be worth more in two years than it is worth today.

Picking Direction Fundamental Analysis Fundamental Analysis Technical Analysis Technical Analysis People arrive at a conclusion as to market direction through various methodologies. Some of the more common: Sometimes they are correct, sometimes they are wrong, and sometimes it takes a long time to be either wrong or right.

Non-Directional Trading SSI’s core trading systems revolve around the idea that it is simpler to determine where the market is NOT going to go, within a given timeframe. By using the options market, you can capitalize on that idea. It is an idea that is also the foundation for one of the biggest industries in the USA… INSURANCE

How Insurance Companies Profit Insurance companies determine the probabilities of certain events occurring and then charge fees to those that are interested in financially protecting against the consequences of such events occurring. Insurance companies determine the probabilities of certain events occurring and then charge fees to those that are interested in financially protecting against the consequences of such events occurring. e.g flooding, fire, auto accidents, death, etc. e.g flooding, fire, auto accidents, death, etc.

Insurance and Option Similarities When you buy insurance, you pay what is generally referred to as a PREMIUM. When you buy insurance, you pay what is generally referred to as a PREMIUM. When you buy an option, you pay what is referred to as PREMIUM When you buy an option, you pay what is referred to as PREMIUM When an insured event occurs, the insurance company has to pay out according to the terms of the contract. When an insured event occurs, the insurance company has to pay out according to the terms of the contract. When the market moves enough to trigger the terms of an option, the investor that SOLD the option must pay out in accordance to the terms as determined by market prices. When the market moves enough to trigger the terms of an option, the investor that SOLD the option must pay out in accordance to the terms as determined by market prices.

Acting as an Insurer In effect, SSI’s core strategy is to act as an insurer. SSI engages in option writing (like writing an insurance policy) that says “We will pay the buyer of this option $250 for every point below 900 on the S&P 500 at anytime over the next 25 days…but the buyer must forfeit $200 today while the market is trading at 1175.” The prices and market targets all vary based on current conditions. SSI uses both technical and fundamental analysis to determine where the stock market is most likely NOT to go and writes options that reflect that analysis. The quantities are determined by the income goals of the specific program and can vary based upon other factors. Note that SSI typically will not engage in positions that would be at risk from a RISING market as premiums, in relation to the estimated probabilities, seem insufficient to warrant the risk. Typically, SSI is looking to deal in options that SSI believes have a perceived less than 5% chance of being price triggered within a 25 – 30 day period.

Advanced Strategies Some of SSI’s programs also engage in the selling and subsequent buying of futures contracts to complement or hedge the core strategy of option writing. Some of SSI’s programs also engage in the selling and subsequent buying of futures contracts to complement or hedge the core strategy of option writing. In effect, while SSI may determine that X target will not be reached in the short- term…X+150 might be likely from the current X+180 price level and we may try to profit from that move with futures. In effect, while SSI may determine that X target will not be reached in the short- term…X+150 might be likely from the current X+180 price level and we may try to profit from that move with futures.

Thank You We hope that this has been a quick and informative insight into SSI’s Core Strategies. For Further Inquiries, Please Contact: or