About the Eagle Investment Program

WHAT IS IT?

The Eagle Investment Program is designed for income- and growth-oriented investors interested in increasing cash flow. The portfolios available through the program employ a standardized portfolio approach, utilizing equity securities and a covered call writing strategy. The portfolios focus on high quality, dividend-paying stocks and provide the investor the ability to sell call options. The investor receives income in the form of dividends, and cash flow is increased through premiums received from selling “covered calls.”

HOW DOES IT WORK?

Covered call writing is the purchase of stock and the sale of a call option or the sale of a call option against a stock currently held by an investor. Usually one call option contract is sold for every 100 shares of stock. The writer receives cash for selling the call but will be obligated to sell the stock at the strike price of the contract if the call is assigned to the account. In other words, an investor is “paid” to agree to sell the underlying security at a specified price in the future (the strike price). In exchange for being paid, the investor gives up any increase in the stock above the strike price.*"

PORTFOLIO ARRANGEMENT

Strong companies that have demonstrated lower than average volatility and a history of paying dividends to shareholders are the foundation of the Eagle Investment Program. A covered call strategy is used to seek moderate growth and to increase cash flow. As with most equity investment strategies, standardized covered call writing does not protect the investor from significant declines in the market or the portfolio’s value.

*This information has been taken directly from the Chicago Board Options Exchange. www.cboe.com

Options involve risk and are not suitable for all investors. Prior to buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options. Please be sure to read and understand this information. You may obtain a copy of this booklet by calling our office at 1-800-575-9509 or by accessing electronically at https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf;