Trading Activities | 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 futures and cleared swaps agreement between the Partnership and Wells Fargo gives, and the customer agreement between the Partnership and 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,” 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 trading, exchange, clearing, user, give-up, floor brokerage and National Futures Association (“NFA”) fees (collectively, the “clearing fees”) paid to Wells Fargo 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 put and call option contracts held during the three and six months ended June 30, 2016 and 2015 were 1,773, 1,876 and 2,646, 2,706, respectively. The following tables present the gross and net information about investments eligible for offset in the Statements of Financial Condition at June 30, 2016 and December 31, 2015, respectively. Gross Amounts not Offset in the Statement of Financial Condition June 30, 2016 Gross Amounts Recognized Gross Offset Statement Financial Condition Amounts Presented Statement Financial Condition Financial Instruments Cash Collateral Received/ Pledged Net Amount Assets Options purchased $ — $ — $ — $ — $ — $ — Total assets — — — — — — Liabilities Written options premium received $ (112,500 ) $ — $ (112,500 ) $ — $ — $ (112,500 ) Total liabilities (112,500 ) — (112,500 ) — — (112,500 ) Net fair value $ (112,500 ) Gross Amounts not Offset in the Statements of Financial Condition December 31, 2015 Gross Amounts Recognized Gross Offset Statement Financial Condition Amounts Presented Statement of Financial Condition Financial Instruments Cash Collateral Received/ Pledged Net Amount Liabilities Written options premium received $ (26,475 ) $ — $ (26,475 ) $ — $ — $ (26,475 ) Total liabilities (26,475 ) — (26,475 ) — — (26,475 ) Net fair value $ (26,475 ) The following tables indicate the gross fair values of derivative instruments of futures and option contracts as separate assets and liabilities as of June 30, 2016 and December 31, 2015, respectively. June 30, 2016 Assets Options Purchased Indices $ — Total options purchased $ — * Liabilities Written options Premium Received Indices $ (112,500 ) Total written options premium received $ (112,500 ) ** * This amount is in “Options purchased, at fair value” on the Statement of Financial Condition. ** This amount is in “Written Options premium received, at fair value” on the Statement of Financial Condition. December 31, 2015 Assets Options Purchased Indices $ — Total options purchased $ — * Liabilities Written options Premium Received Indices $ (26,475 ) Total written options premium received $ (26,475 ) ** * This amount is in “Options purchased, at fair value” on the Statement of Financial Condition. ** This amount is in “Written options premium received, at fair value” on the Statement of Financial Condition. The following table indicates the trading gains and losses, by market sector, on derivative instruments for the three and six months ended June 30, 2016 and 2015. Three Months Ended June 30, Six Months Ended June 30, Sector 2016 2015 2016 2015 Indices $ 4,236,506 $ 2,124,509 $ 4,065,293 $ 7,275,140 Total $ 4,236,506 *** $ 2,124,509 *** $ 4,065,293 *** $ 7,275,140 *** *** This amount is included in “Total trading results” on the Statements of Income and Expenses. |