Dividend Trade Fund, LLC

An opportunity to invest in Dividend Trade Fund LLC (“DTF”), a Reg. D 506(b) transaction. Use of proceeds is to fund a Firm Portfolio Margin Account at a major global clearing firm solely to conduct a proprietary trade (“the Trade”) consistently profitable on only one major regional Stock Exchange (“The Exchange”).

Dividend Trade Fund, LLC is a Florida Limited Liability Company. Its trading activities will be overseen by two seasoned Operating Partners: a Portfolio Manager and an Exchange Floor Broker.

1. Success of the Trade does not depend on any movement in a stock price for trading profits.
2. The Trade’s only objective is to capture dividends on ex-Dividend date from stock purchased the day before.
3. Investor capital is protected against any movement in the stock price. All long stock positions are hedged at all times and unwound immediately after capturing the dividend. Account balance remains unaffected
4. Employed since 2004, this is not a new or unknown strategy. A limited number of brokers on the Exchange specialize in this trade, and opportunities to participate are highly sought after.

Trading will commence immediately upon completion of the account opening process. Due diligence will be extensive and transparent.

1. Hedging Opportunity: Since DTF’s objective is a dependable, ongoing flow of significant current income (as opposed to solely capital appreciation), participation in DTF may be viewed as a strategic component of a comprehensive portfolio hedging strategy.  Nevertheless, there will be no restriction against transfer of the Membership interests for profit.
2. Because:
3. Capital requirement (investment) is limited to $5MM.
4. Substantial barriers-to-entry have been addressed by DTF and its Operating Partners.
5. Opportunities to participate in the Trade are highly sought after by traders familiar with it.

DTF represents a unique opportunity to participate in a Trade with a compelling risk/reward profile by partnering with its most experienced participant

DTF’s Operating Partners (Portfolio Manager and Floor Trader) are two financial professionals with substantial reputations, the first of which was an original proponent of this Trade in 2004. The second is a Principal of an Exchange-member broker/dealer. Together, DTF’s Operating Partners will identify trading opportunities, and broker the transactions for DTF. None have greater experience in this Trade.

Shortly after beginning his trading Career on The Exchange in 1981, he established his own firm, a broker dealer at the Exchange. For the next thirty years, he managed his firms trading, overseeing thirteen traders at the firm. His own trading involved streaming option markets for over three hundred stocks, while making markets for virtually every option trading on the exchange floor, and employing appropriate risk management for the firms overall portfolio.

The numerous trading strategies employed during this period ( in addition to basic market making) included a long/short proprietary rate of change trading model, an interest bearing short stock short put arbitrage, trading hard to borrows, dispersion trading, and volatility trading, along with being one of the earliest proponents of the dividend capture trade.  All were sophisticated strategies requiring innovative hedging techniques and detailed risk management assessments, which were conducted daily, always with the highest priority.

Trading is currently focused on the dividend capture strategy. This requires a thorough analysis of option open interest numbers, combined with put values, interest rate expenses, associated trading expenses, regulatory requirements and liquidity, in addition to employing appropriate risk management and hedging techniques.

DTF’s Participating Floor Broker is the Principal of an Exchange-member firm. He has been associated with several Exchange- member firms since 1983 and a member of the Exchange since 1990. His experience and prominence in the industry is recognized by his peers and the Exchange. He served on the Exchange’s Allocations Committee and the Rules Committee. These appointments provided him with special insights into issues confronting the marketplace, and indicate the regard in which he is held by the Board of Directors of the Exchange in regard to Exchange Governance.

Beginning his career in 1983 at the Exchange he was initially responsible for accepting orders from Exchange-member trading desks for Chicago Corporation, and the relay and management of such orders to floor brokers for execution. Subsequently, in 1986 he assumed responsibility for Exchange-equity and option execution for First Options of Chicago (“First Options”). In 1990, he assumed responsibility for all floor operations for Philadelphia Trading and Research (“PTR”).

In March 1994, he was invited by the then Chairman of the Exchange to join his firm as Senior Vice President in charge of that firm’s coverage of customer accounts. In 1999, he established his own firm which provides execution capabilities on the Exchange to a wide variety of clients, such as banks, hedge funds, and other broker/dealers wishing to benefit from his thirty-plus-years of leadership, experience, and relationships.

Wealth Management Associates, LLC (“WMA”): is a Florida Registered Investment Advisor. Its business focus is servicing other financial service firms. It has arranged trading relationships for its fixed-income-trading clients with other trading partners in the U.S. and Switzerland. Richard Perea, WMA’s Principal, was Treasurer of Country Operations in Latin America for Citibank, NA and Vice President for Latin American and European loan syndication at Marine Midland Bank (now HSBC) in New York and London. Mr. Perea won the Chairman’s Award at American Express for the American Express Global Fiduciary Initiative, enabling coordinated delivery of estate and tax planning services to Amex clients worldwide.

DTF’s Clearing Agent is an SEC Registered b/d & Clearing Firm and a wholly owned subsidiary of one of the world’s largest banks by assets and market capitalization. It is regulated by the New York State Office of Financial Services and the Federal Reserve Bank of New York. DTF’s settlement agent provides clearing services for broker/dealers worldwide, maintaining over ten branches in Asia, twelve branches in Europe, four branches in North America and recent presences in Latin America.