Challenge Rules

The purpose of the options challenge is to create a community of fun loving option traders to share ideas in a competitive game. Our main focus at OptionSlam.com is trading options around earnings events. As the stock earnings season is a quarterly recurring event, our challenge will run four times a year on a similar schedule. Our first launch of the contest will have no cash rewards as it is in the beta stage. As the game becomes successful we will provide real cash rewards and other prizes of value. We hope to be able to offer high dollar value prizes in the near future. Naturally an ever increasing participation in the contest will be necessary to grow the cash prizes. So please join in the fun and sign up here for the OptionSlam.com trading Challenge.

This Challenge Game is for non-professional traders only. No Purchase is necessary. There is no entrance fee. Participants must be of the age of majority in their residence or older at the time of entry. This Challenge is an options market simulation and all transactions made in the challenge shall not constitute actual options market purchases.

Prize Money There will be no cash prizes in our first quarterly challenge event.

• 1st prize: SIX (6) month subscription to OptionSlam.com
• 2nd prize: FOUR (4) month subscription to OptionSlam.com
• 3rd prize: TWO (2) month subscription to OptionSlam.com

1. Eligibility. - Registration at OptionSlam.com is required for participation in the challenge. You can register here for free. Only one entry per person per quarter will be allowed. Also you must read and agree to the rules page presented here and register for the challenge at the bottom of this page.

2. Trading Period. - Elibible positions must be opened during the trading dates beginning Mar 22, 2009 and ending July 19, 2009. Values of open positions in contracts that go into expiration without being closed will be calculated based on the closing price of the corresponding option expiration date. The value will be added back into participants simulated trading account as if the participant closed the position. In the final month of trading in any challenge quarter, back month options will be allowed to remain open until their respective expiration.

example: an August 09 trade is open for the current apr/jul quarter challenge. The aug contract positions may stay open to their expiration date and their value upon Aug expiration will be calculated into the traders apr/jul challenge entry.

No options will be converted into long or short stock through the exercise and assignment process.

3. Initial Cash Balance. - Initial cash balance will be US$10,000.

4. Eligible Securities. - Only Options on stocks that are currently being tracked in the Optionslam.com Database are allowed. Options must have a minimum bid price of $0.20 No stock long or short is allowed. This is a trading challenge for options only.

5. Order Types and Trade Execution. - Market or limit orders will be accepted. Day orders or GTC orders will be accepeted. All orders are executed at the delayed price estimate for up to 20 minutes. Each transaction made by a member will automatically appear in the Member's portfolio and transaction history.

6. Commissions. - There will be no commissions calculated or assumed.

7. Trading Halts. - Halted, restricted, and blocked Stocks will not be available for trading. Any trade that is erroneously confirmed after trading has been halted will be busted.

8. Position and Transaction Limit. - A trade will be identified as any order that is filled to open a position.

Examples:

BTO - 3 july 22.50 puts on XYXZ stock. = one trade
BTO . 3 july 22.50 calls on XYXZ stock = one trade
BTO . 3 july 22.50 straddle XYXZ stock = one trade

Closing a position does not constitute a trade.

A minimum of ten (10) opening trades per quarter will be required to qualify for prizes. A maximum of six (6) trades per day per underlying equity will be allowed.

9. Discrepancies. - OptionSlam.com may disqualify any entrant that it believes to be breaking, bending, or manipulating the rules to their benefit. Any trader or trade can be disqualified at the sole discretion of OptionSlam.com. The decision of Optionslam.com is final in all matters.

10. Conduct and Limitation of Liability. - Optionslam.com assumes no responsibility or liability for loss, falsified, or incomplete entries, trades, notifications, responses, or for any computer, online, software, telephone, hardware or technical malfunctions that may occur, including but not limited to malfunctions that may affect the transmission or non-transmission of a trade. Optionslam.com is not responsible for any incorrect or inaccurate information, whether caused by website users or by any of the equipment or programming associated with or utilized in the challenge or by any technical or human error which may occur in the administration of the Challenge.