Censura Futures Management,LLC

Technical Entry, Option Writing (TEOW)

TECHNICAL OPTION WRITING This program only trades financial futures, with a focus on S&P 500 futures contracts and options on those contracts. Censura (“the Advisor”) uses a systematic approach to futures trading which seeks to make a technically correct “buy” or “sell” of the S&P 500 futures contract. These price levels are determined by several proprietary technical tools that were developed by the Advisor to determine long-term support and resistance price levels on the S&P 500. These price levels are what the Advisor calls inflection points. It is the opinion of the Advisor that the index will either reverse its current direction at an inflection point or, at a minimum, see short-term stagnation in price movement. The Advisor sells naked call and put options against inflection points on the S&P 500 index. Most of the options that are sold by the Advisor expire worthless at expiration because the options that the Advisor sells are significantly out of the money and are significantly outside of long term support and resistance levels. In the event that the market closes above or below an inflection point on the day of expiration, and the futures contract is actually put or called away from the account, the Advisor will then utilize the same technical tools to determine an exit strategy for the contract. The exit strategy involves setting logical profit and sell objectives as well as using covered call or put options to hedge against risk. This methodology for trading enables the client to buy or sell the S&P contract at a technically and historically advantageous long-term support or resistance area. It is the Advisors opinion that by selling options at a pre-determined price level the Advisor is assured of entering or exiting a trade at a technically advantageous level that will result in a higher number of successful trades.