4.	Trading Activities:

The Partnership was formed for the purpose of trading contracts in a variety of commodity interests, including derivative financial instruments and derivative commodity instruments. The results of the Partnership’s trading activities are shown in the Statements of Income and Expenses.

The Wedbush Customer Agreement and the ADM Customer Agreement give, and the Wells Fargo Customer Agreement and the customer agreement between the Partnership and Morgan Stanley & Co. LLC (“MS&Co”) gave the Partnership the legal right to net unrealized gains and losses on open futures and option contracts. The Partnership netted as applicable, for financial reporting purposes, the unrealized gains and losses on open futures and option contracts on the Statements of Financial Condition as the criteria under Accounting Standards Codification 210-20, “Balance Sheet,” have been met.

Ongoing selling agent fees paid to Baird, Morgan Stanley Wealth Management and Credit Suisse Securities (USA) LLC were calculated as a percentage of the Partnership’s adjusted net asset value on the last day of each month and were affected by trading performance, subscriptions and redemptions.

Trading and transaction fees are based on the number of trades executed by the Advisor for the Partnership. All clearing fees paid to Wells Fargo, Wedbush, ADM and executing brokers, as applicable, are, and all clearing fees paid to MS&Co. were, borne by the Partnership.

All of the commodity interests owned by the Partnership are held for trading purposes. The monthly average number of option contracts held during the years ended December 31, 2017 and 2016 were 3,506 and 2,357, respectively.

The following tables summarize the valuation of the Partnership’s investments as of December 31, 2017 and 2016:

									Gross Amounts not Offset in the Statements of Financial Condition
December 31, 2017	Gross Amounts Recognized			Gross Amounts Offset in the Statements of Financial condition		Amounts Presented in the Statements of Financial condition			Financial Instruments			Cash Collateral		Net Amount
Assets
Options purchased	$	211,200		$	—	$	211,200		$	(209,000	)	$	—	$	2,200
Total assets		211,200			—		211,200			(209,000	)		—		2,200
Liabilities
Written options	$	(209,000	)	$	—	$	(209,000	)	$	209,000		$	—	$	—
Total liabilities		(209,000	)		—		(209,000	)		209,000			—		—
Net fair value														$	2,200

									Gross Amounts not Offset in the Statements of Financial Condition
December 31, 2016	Gross Amounts Recognized			Gross Amounts Offset in the Statements of Financial condition		Amounts Presented in the Statements of Financial condition			Financial Instruments			Cash Collateral		Net Amount
Assets
Options purchased	$	621,000		$	—	$	621,000		$	(699,200	)	$	—	$	(78,200	)
Total assets		621,000			—		621,000			(699,200	)		—		(78,200	)
Liabilities
Written options	$	(699,200	)	$	—	$	(699,200	)	$	699,200		$	—	$	—
Total liabilities		(699,200	)		—		(699,200	)		699,200			—		—
Net fair value														$	(78,200	)

The following table indicates the gross fair values of derivative instruments of option contracts as separate assets and liabilities as of December 31, 2017 and 2016:

	2017		2016
Assets
Options Purchased
Indices	$	211,200	$	621,000
Total options purchased	$	211,200	$	621,000	*

*	This amount is included in “Options purchased, at fair value” on the Statements of Financial Condition.

	2017				2016
Liabilities
Written Options
Indices	$	(209,000	)		$	(699,200	)
Total written options	$	(209,000	)	**	$	(699,200	)	**

**	This amount is included in “Written options, at fair value” on the Statements of Financial Condition.

The following table indicates the trading gains and losses, by market sector, on derivative instruments for the years ended December 31, 2017, 2016 and 2015.

Sector - Indices	2017			2016				2015
Net realized gains (losses) on closed contracts	$	5,742,840		$	8,064,452			$	8,821,652
Change in net unrealized gains (losses) on open contracts		31,648			(30,088	)			337,103
Total trading results	$	5,774,488	***	$	8,034,364		***	$	9,158,755	***

***	This amount is included in “Total trading results” on the Statements of Income and Expenses.

The following table rolls forward the transactions in Options Written for the year ended December 31, 2017.

	Calls									Puts

				Notional (000)									Notional (000)
	Contracts			USD			Premiums Received			Contracts			USD			Premiums Received
Outstanding options, beginning of year		920		$	548,550		$	57,500			920		$	480,470		$	578,450
Options written		28,262			17,908,253			2,016,813			93,303			54,565,785			28,098,738
Options exercised		—			—			—			—			—			—
Options expired		(26,950	)		(17,109,586	)		(1,920,188	)		(76,099	)		(44,518,737	)		(22,548,450	)
Options closed		(1,792	)		(1,142,850	)		(137,625	)		(17,068	)		(9,867,518	)		(5,987,938	)
Outstanding options, end of year		440		$	204,367		$	16,500			1,056		$	660,000		$	140,800