| Investment Objective: |
The fund is designed to earn income while maintaining the ability to invest in equity markets opportunistically. In pursuing the fund's objective, the fund employs an options-based strategy, equity strategy, or strategic combination of the two strategies based on a statistical analysis of the equity markets. During periods of low volatility of the equity market, the fund normally holds treasury securities, money market funds, and cash equivalents to generate income and act as collateral for the T. ROWE PRICE 2 fund's disciplined options-based strategy. The use of options is designed to generate additional income for distribution to shareholders. Specifically, the fund writes (i.e., sells) put options on an ETF or index representing the performance of companies with large market capitalizations, such as options on the SPDR S&P 500 ETF Trust ("SPY") or options on the S&P 500 Index. The fund will generally write "out-of-the-money" equity options, which means that the underlying equity market price when the options are written are higher than the strike price. As the seller of put options, the fund collects a premium and has an obligation to pay the value of the index at a set strike price, if the index falls below that price prior to the expiration date. |
