Under normal market conditions, the portfolio is biased toward long positions – particularly those securities which we believe have the greatest potential to outperform the broader market in the short term (less than a month) to medium term (up to one year). Short term strategies are predominantly vertical option spreads. Medium term strategies include buying the stock and selling calls against it (“buy/write”), and calendar option spreads. Because our trades often involve selling an option, our strategy benefits from the higher option premiums associated with more volatile stocks. While we try to diversify and balance the portfolio among market sectors, the preference for higher volatility tends to result in a greater concentration in high growth technology stocks. Other sectors may be characterized by high volatility from time to time, such as energy stocks which are highly levered to the price of the underlying commodity (typically oil).