NFI Aggressive Short Premium

Strategy Overview: The investment philosophy of NFI Aggressive Short Premium is predicated upon statistical probabilities in the various U.S. Indexes. By analyzing period movements for the S&P 500, the Russell 2000 and the NASDAQ, overlaid with current economic, financial and geopolitical data we structure option positions that are 35 to 50 days in length with a high statistical probability of success. Additionally, we mitigate our positions with the use of hedging techniques designed to offset 30% to 40% of a sudden drop in the overall market. Furthermore standardized repurchase practices are utilized to reduce or eliminate potential portfolio drawdowns. We sell put and call options on the various US Indexes with expirations of 35 to 50 days in length.

Portfolio Construction: Every month we analyze movements of the S&P 500, the Russell 2000 and the NASDAQ, overlaid with current economic, financial and geopolitical data we structure our portfolio10% to 24% above and/or below the various indexes 35 to 50 days to expiration, with a high statistical probability of success. Additionally, we mitigate our positions with the use of hedging techniques designed to offset 30% to 40% of a sudden drop in the overall market.

Risk Management: Examples of Risk Management Strategies; Leveraged one for one collateral protection puts are purchased, Long options to hedge catastrophic decline of 10% or more, Use no more than 70% of the available collateral, Repurchase or roll down at 70% probability and the use of options on only US Stock Indexes.

Winning Trade Example: We sold to open OEX 445 Put options with 35 days to expiration at $3.90 per contract or $ 39,000 per 100 contracts and closed the OEX 445 Put options 33 days later by buying to close at $0.05 per contract for a total of $500 per 100 contracts.

Losing Trade Example: We sold to open SPX 990 Put options with 30 days to expiration at $4.60 per contract or $46,000 per 100 contracts and closed the SPX 990 Put options 3 days later by buying at $5.70 to close for a total of $57,000 per 100 contracts.

Company Overview: NFI Advisors, Inc. is a comprehensive advisory firm committed to the process of creating alpha while focusing on the overall risk management of the portfolio. Our portfolio management adheres to a strict investment structure and process. The foundation of our investment structure has its roots in the retail brokerage business starting in 1984 with a firm specializing in bonds and utility stocks and one VP that had a special interest in the options market. That foundation has provided a long history of fundamental risk management techniques that have been improved upon over the years through use of technology and improved trading strategies. As a boutique firm trading in one of the largest and most liquid markets on the exchanges, NFI Advisors, Inc. is agile enough, responsive enough and nimble enough to react and respond to the unforeseen occurrences in the global environment we live in today.

Management Bios: Thomas P. Norris Chief Investment Officer, founding Principal of NFI Advisors Mr. Norris has over 30 years of experience, including analysis, portfolio management, and asset consulting. He is the lead Portfolio Manager for the NFI Capital Partners, LP Fund and oversees the NFI Income Strategies Fund. Daniel Tacker, Portfolio Manager, Senior Vice President Daniel is an Investment Advisor Representative and a portfolio manger that has over 15 years of investment experience with NFI Advisors, Inc. He is the Associate Portfolio Manager for the NFI Capital Partners, LP Fund and the Lead Portfolio Manager for the NFI Income Strategies Fund. Diana Barnes, Chief Compliance Officer Diana is the Chief Compliance Officer for NFI Advisors, Inc. She has over 20 years experience in all facets of securities industry compliance and supervision. She oversees the firm's compliance and is responsible for the oversight of administrative, legal and accounting professional matters.