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Trade Center, LLC

Trade Center, LLC. Managed Futures & Options. PRESENTATION DISCLOSURE

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Trade Center, LLC

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  1. Trade Center, LLC Managed Futures & Options

  2. PRESENTATION DISCLOSURE THE RISK OF TRADING COMMODITY FUTURES, OPTIONS AND FOREIGN EXCHANGE ("FOREX") IS SUBSTANTIAL. THE HIGH DEGREE OF LEVERAGE ASSOCIATED WITH COMMODITY FUTURES, OPTIONS AND FOREX CAN WORK AGAINST YOU AS WELL AS FOR YOU. THIS HIGH DEGREE OF LEVERAGE CAN RESULT IN SUBSTANTIAL LOSSES, AS WELL AS GAINS. YOU SHOULD CAREFULLY CONSIDER WHETHER COMMODITY FUTURES, OPTIONS AND FOREX IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IF YOU ARE UNSURE YOU SHOULD SEEK PROFESSIONAL ADVICE. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE SUCCESS. IN SOME CASES MANAGED ACCOUNTS ARE CHARGED SUBSTANTIAL COMMISSIONS AND ADVISORY FEES. THOSE ACCOUNTS SUBJECT TO THESE CHARGES, MAY NEED TO MAKE SUBSTANTIAL TRADING PROFITS JUST TO AVOID DEPLETION OF THEIR ASSETS. EACH COMMODITY TRADING ADVISOR ("CTA") IS REQUIRED BY THE COMMODITY FUTURES TRADING COMMISSION ("CFTC") TO ISSUE TO PROSPECTIVE CLIENTS A RISK DISCLOSURE DOCUMENT OUTLINING THESE FEES, CONFLICTS OF INTEREST AND OTHER ASSOCIATED RISKS. A HARD COPY OF THESE RISK DISCLOSURE DOCUMENTS SHOULD ACCOMPANY THIS MATERIAL. THE FULL RISK OF COMMODITY FUTURES, OPTIONS AND FOREX TRADING CAN NOT BE ADDRESSED IN THIS RISK DISCLOSURE STATEMENT. NO CONSIDERATION TO INVEST SHOULD BE MADE WITHOUT THOROUGHLY READING THE DISCLOSURE DOCUMENT OF EACH OF THE CTAS IN WHICH YOU MAY HAVE AN INTEREST. REQUESTING A DISCLOSURE DOCUMENT PLACES YOU UNDER NO OBLIGATION AND EACH DOCUMENT IS PROVIDED AT NO COST. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN ANY OF THE FOLLOWING PROGRAMS NOR ON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE DOCUMENTS. OTHER DISCLOSURE STATEMENTS ARE REQUIRED TO BE PROVIDED TO YOU BEFORE AN ACCOUNT MAY BE OPENED FOR YOU. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

  3. Trade Center Presents: Zenith Resources Index Option Writing Program Futures and options trading involves substantial risk and is not suitable for all investors

  4. Integrity & Trust Trade Center has been offering alternative investment products to investors around the globe since 1994 . . . • Serving individual investors, corporations and trusts • Providing investment alternatives our clients seek • Backing these investment products with consistently good customer service. Futures and options trading involves substantial risk and is not suitable for all investors

  5. The Investment Trade Center is pleased to present Zenith Resources Zenith Resources offers managed futures and options services to Trade Center clients seeking to diversify their portfolios. Futures and options trading involves substantial risk and is not suitable for all investors

  6. Zenith Resources Management Services Zenith Resources offers management services to sophisticated individuals, professional investors and institutions who wish to diversify their portfolio by participating in alternative investments. Ed Padon – President Mr. Padon has done extensive research in the development of proprietary formulas for use in the trading of options on stock index futures. After testing and legitimizing the formulas for use in the S&P 500 futures options, the system has been utilized to manage accounts for three plus years. Zenith Resources registered on July 14, 2003 as a Commodity Trading Advisor so that the system can be introduced to and utilized by a larger number of clients. Futures and options trading involves substantial risk and is not suitable for all investors

  7. Zenith Resources An Introduction • Zenith Resources is a Texas Corporation registered with the Commodity Futures Trading Commission as a Commodity Trading Advisor. • Inception of trading client accounts according to this program: December 1999. • The trading approach incorporates a combination of approximately 90% systematic logic with 10% trader discretion. Futures and options trading involves substantial risk and is not suitable for all investors

  8. Managed Futures and Options as an Asset Class Managed futures and options is an asset class that refers to professional money managers known as commodity trading advisors or CTAs. These CTA’s specialize in managing assets by applying their trading approach in the futures and options markets. Futures and options trading involves substantial risk and is not suitable for all investors

  9. Adding Managed Futures to your Stock and Bond Portfolio Managed futures can be combined with stock and bond portfolios providing an opportunity for investors to potentially significantly improve the overall risk characteristics of their portfolio without giving up much in terms of expected return. The chart at the right provides an example of adding a 20% managed futures portfolio to an even mix stock & bond portfolio. All data is derived from indexes. The following chart shows the affects of reallocating 20% of a stock and bond investment portfolio to Autumn Gold CTA Index (blue area). The green area represents a portfolio consisting of 50% Barra S&P and 50% Lehman Aggregate Bond Index

  10. Zenith Resources Returns Annual Returns  The following results are net of a 0% Management Fee and 30% Incentive Fee. 2000 32.07% 2001 31.73% 2002 46.49% 2003 23.13% 2004 17.64% 2005 14.36% 2006 2.49% Largest peak-to-valley drawdown: (3.12%) September 2001 Please note that a drawdown is defined as losses experienced by the trading program over a specified period of time. Past performance is not indicative of future results. Futures and options trading involves substantial risk and is not suitable for all investors

  11. How the Index Option Program Works It is the intention of Zenith Resources to write mainly “out-of-the-money” puts and calls, which means it will write puts which have strike prices below the current price of the index and write calls which have strike prices above the current price of the index. Thus, if the index remains near its current price until the options expire, both the puts and calls will be profitable. If the index moves up above the strike price of the calls, the calls may be unprofitable. If the index moves down below the strike price of the puts, the puts may be unprofitable. Futures and options trading involves substantial risk and is not suitable for all investors

  12. What Makes Zenith Resources Unique • Zenith sells options on a risk based program, or the statistical risk of an option going “into the money” The goal is not only generating income but risk management and assessment as well. Selling uncovered options does require the use of leverage and unlimited risk. • No management fees. Zenith Resources derives its compensation primarily from incentive fees. They prosper only when the client does. • Impressive track record of actual performance. Past performance is no guarantee of future results. Futures and options trading involves substantial risk and is not suitable for all investors

  13. Why do our Clients do Business with Us? • We provide a structured and disciplined approach to investing • We are realistic in our goal setting and communication • We provide the experience and expertise that is difficult to match • We offer diversification solutions for their portfolio Futures and options trading involves substantial risk and is not suitable for all investors

  14. The Investment Minimum Account Participation The minimum account size for the Program is $50,000 Fee Structure Zenith Resources charges a 30% incentive fee, on net new profits monthly. For accounts between $100,000 and $250,000 the incentive fee is reduced to 25%. Accounts over $250,000 enjoy incentive fees of only 20%. Futures and options trading involves substantial risk and is not suitable for all investors

  15. How do I Track the Performance of my Managed Account? • The account activity is fully transparent. You will be able to view a complete accounting of all activity in your account 24 hours a day via our custom web application, including your account balance. • You will also receive a monthly summary of every transaction. Futures and options trading involves substantial risk and is not suitable for all investors

  16. Getting Started Account Opening Documents Opening a new account is simple. You need to complete the New Account Documents for your brokerage account. This presentation is offered as a supplement to the Disclosure Document supplied with this brochure. It is imperative that you read and understand the Disclosure Document before making any financial decisions. If you have any questions, please contact your Trade Center, LLC representative at 800.894.8194 or via our local telephone line at 949.643.7100. Futures and options trading involves substantial risk and is not suitable for all investors

  17. Contact Trade Center • Toll free telephone line: 800.894.8194 • Local telephone line: 949.643.7100 • Email: Info@tradecenterinc.com • Web Site: www.tradecenterinc.com • Address: 101 Enterprise # 330 Aliso Viejo, California 92656

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