C A P I TA L S T R E N G T H B U Y - W R I T E P O R T F O L I O
SERIES 30
The Capital Strength Buy-Write Portfolio invests in
a fixed portfolio of common stocks of wellcapitalized companies with strong market
positions, and simultaneously, the portfolio sells a
Long-Term Equity AnticiPation Securities (LEAPS®)
call option against each position. The writing
(selling) of a call option generates income in the
form of a premium paid by the option buyer. The
portfolio invests this income in U.S. Treasury notes
and the interest received from the notes is paid to
unit holders periodically.
One important advantage that well-capitalized
companies enjoy over others is that they have the
potential to provide their stockholders with a greater
degree of stability and performance over time.
Through our selection process, we seek to find
companies with the following qualities:
• Well-capitalized with strong balance sheets;
• Skilled management;
• High liquidity;
• Ability to generate earnings growth; and
• Record of financial strength and profit growth.
You should be aware that a product which
includes writing call options may not be suitable
for all investors. It may not be appropriate for
investors seeking above-average capital
appreciation. Before investing, you should make
sure you understand the risks of this type of
product, and whether it suits your current
financial objectives.
WHY C ASH MAT TERS
Companies with sizeable cash positions tend to be
mature companies that dominate their industries.
A company with a significant amount of cash on
its balance sheet is attractive for many reasons.
Cash enables companies to bypass the credit
markets and provides the means to:
• Make strategic cash-financed mergers and
PORTFOLIO SUMMARY
Initial Date of Deposit:
1/18/2017
Initial Public Offering Price:
$10.00 per Unit
Portfolio Ending Date:
1/23/2019
Estimated Strike Price of the LEAPS as a % of the
Market Price of the Common Stocks:
120.98%
Estimated Net First Year Distribution per Unit:*
Income $0.1188
Principal $0.5803
Total $0.6991
• Repurchase undervalued shares;
• Reinvest cash to grow their business;
• Improve their debt rating, thus reducing their
Estimated Net Subsequent Year Distribution per Unit:*
Income $0.1176
Principal $0.0000
Total $0.1176
cost of capital; and
• Fund research and development projects, even
in a down market.
CUSIP:
30302D822
Fee Accounts CUSIP:
30302D830
acquisitions;
• Begin to pay dividends or increase dividend
payments to boost returns;
COMMON STOCK
SELEC TION PROCESS
Begin with the S&P 500 Index
> $1 Billion in Cash
Long-Term Debt/Market Value of Equity <30%
Return on Equity > 15%
Cash Flow Analysis and Analyst Judgment
COMMON STOCKS SELECTED
FOR THE PORTFOLIO
ILLUSTRATIVE MARKET SCENARIOS
Ticker Symbol:
FVMHRX
*The estimates are based on annualizing the most recent dividends declared by the issuers of the
securities included in the portfolio. Consists of estimated net annual income and estimated annual
principal from the maturity of Treasury Obligations. There is no guarantee that the issuers of the
securities included in the portfolio will declare dividends in the future or that, if declared, they will
either remain at current levels or increase over time. In addition, the actual net annual distributions
will be reduced if securities are sold pursuant to the LEAPS prior to the portfolio’s termination.
PORTFOLIO OBJEC TIVES
This unit investment trust seeks income, with capital appreciation as a secondary
objective. There is, however, no assurance that the objectives will be achieved.
You should consider the portfolio’s investment objectives, risks, and charges
and expenses carefully before investing. Contact your financial advisor or
call First Trust Portfolios L.P. at the number listed below to request a
prospectus, which contains this and other information about the portfolio.
Read it carefully before you invest.
S T O C K P R I C E S I N C R E A S E A B O V E T H E L E A P S ’ E X E R C I S E P R I C E | The LEAPS
are exercised and the underlying stock shares are sold at the strike price. Profits are limited to the
premium income received from writing the LEAPS, dividends received from the common stocks prior to
their sale from the portfolio, interest received from the U.S. Treasury Obligations, plus the difference
between each common stock’s initial price and their strike price. Investors will forgo any dividends paid
on the common stocks subsequent to their sale from the portfolio and any gain in the underlying stock
price after the stock is sold. It is important to note that writing covered calls limits the appreciation
potential of the underlying common stocks.
S T O C K P R I C E S R E M A I N S T A B L E | The LEAPS expire worthless and the portfolio still owns
the common stock shares. Profits are limited to the premium income received from writing the LEAPS,
plus dividends from the stocks, as well as interest received from the U.S. Treasury Obligations.
S T 0 C K P R I C E S D E C R E A S E | The LEAPS expire worthless and the portfolio still owns the
common stock shares. The break even on the stocks is lowered by the premium income received from
writing the LEAPS. In addition, the portfolio will receive dividends from the common stocks, and interest
from the U.S. Treasury Obligations.
PLEASE SEE THE REVERSE SIDE FOR RISK CONSIDERATIONS
First Trust Portfolios L.P. | Member SIPC | Member FINRA
1-800-621-1675 | www.ftportfolios.com
SERIES 30
C A P I TA L S T R E N G T H B U Y - W R I T E P O R T F O L I O
SALES CHARGES (BASED ON A $10 PUBLIC OFFERING PRICE)
HOLDINGS
EQUITY SECURITIES
1
TICKER COMPANY NAME
ACN
GOOG
AMGN
AAPL
BBY
BIIB
BA
CELG
COST
CMI
DAL
EA
FB
GD
HD
LRCX
MA
MCK
NKE
PCLN
RTN
SBUX
UNP
UNH
DIS
LEAPS
PRICE
Accenture Plc
Alphabet Inc.
Amgen Inc.
Apple Inc.
Best Buy Co., Inc.
Biogen Inc.
The Boeing Company
Celgene Corporation
Costco Wholesale Corporation
Cummins Inc.
Delta Air Lines, Inc.
Electronic Arts Inc.
Facebook, Inc.
General Dynamics Corporation
The Home Depot, Inc.
Lam Research Corporation
Mastercard Incorporated
McKesson Corporation
NIKE, Inc.
The Priceline Group Inc.
Raytheon Company
Starbucks Corporation
Union Pacific Corporation
UnitedHealth Group Incorporated
The Walt Disney Company
DESCRIPTION OF CALL OPTIONS
$116.03
804.61
154.80
120.00
44.88
283.01
157.67
114.95
163.81
138.92
50.33
80.23
127.87
175.97
135.93
109.10
108.40
148.43
53.65
1,540.13
145.10
58.00
103.37
160.66
107.97
CALL PREMIUM2
ACN
01/18/19 Accenture Plc C 140
GOOG
01/18/19 Alphabet Inc. C 980
AMGN
01/18/19 Amgen Inc. C 190
AAPL
01/18/19 Apple Inc. C 145
BBY
01/18/19 Best Buy Co., Inc. C 55
BIIB
01/18/19 Biogen Inc. C 340
BA
01/18/19 The Boeing Company C 190
CELG
01/18/19 Celgene Corporation C 140
COST
01/18/19 Costco Wholesale Corporation C 195
CMI
01/18/19 Cummins Inc. C 170
DAL
01/18/19 Delta Air Lines, Inc. C 60
EA
01/18/19 Electronic Arts Inc. C 100
FB
01/18/19 Facebook, Inc. C 155
GD
01/18/19 General Dynamics Corporation C 210
HD
01/18/19 The Home Depot, Inc. C 165
LRCX
01/18/19 Lam Research Corporation C 130
MA
01/18/19 Mastercard Incorporated C 130
MCK
01/18/19 McKesson Corporation C 180
NKE
01/18/19 NIKE, Inc. C 65
PCLN
01/18/19 The Priceline Group Inc. C 1,860
RTN
01/18/19 Raytheon Company C 175
SBUX
01/18/19 Starbucks Corporation C 70
UNP
01/18/19 Union Pacific Corporation C 125
UNH
01/18/19 UnitedHealth Group Incorporated C 195
DIS
01/18/19 The Walt Disney Company C 130
TREASURY OBLIGATIONS
U.S. Treasury Note, 0.875%, due 04/15/2017
U.S. Treasury Note, 0.875%, due 07/15/2017
U.S. Treasury Note, 0.875%, due 10/15/2017
U.S. Treasury Note, 0.875%, due 01/15/2018
$480.00
4,570.00
660.00
725.00
360.00
3,150.00
655.00
1,050.00
535.00
680.00
515.00
795.00
1,255.00
720.00
480.00
820.00
530.00
980.00
315.00
13,700.00
505.00
297.00
590.00
555.00
516.00
1
As of the close of business on 1/17/17. Market values are for reference only and are not indicative of your
individual cost basis.
2
Represents market value per contract. Each contract entitles the holder to purchase 100 shares of common
stock at the strike price.
NOT FDIC INSURED | NOT BANK GUARANTEED | MAY LOSE VALUE
STANDARD ACCOUNTS
Transactional Sales Charges:
Creation & Development Fee:
Maximum Sales Charge:
Initial 1.00%
Deferred 2.45%
0.50%
3.95%
The deferred sales charge will be deducted in three monthly installments commencing 4/20/17.
FEE/WRAP ACCOUNTS*
Maximum Sales Charge:
0.50%
*The maximum sales charge for investors in fee accounts consists of the creation and development fee.
Investors in fee accounts are not assessed any transactional sales charges. Standard accounts sales charges
apply to units purchased as an ineligible asset.
The creation and development fee is a charge of $.050 per unit collected at the end of the initial offering
period. If the price you pay exceeds $10 per unit, the creation and development fee will be less than 0.50%;
if the price you pay is less than $10 per unit, the creation and development fee will exceed 0.50%.
In addition to the sales charges listed, UITs are subject to annual operating expenses and organization costs.
VOLUME DISCOUNTS
If you invest at least $50,000, the maximum sales charge is reduced as follows:
INITIAL PURCHASES
MAXIMUM SALES CHARGE
$50,000 but less than $100,000
3.70%
$100,000 but less than $250,000
3.45%
$250,000 but less than $500,000
3.10%
$500,000 but less than $1,000,000
2.95%
$1,000,000 or more
2.45%
RISK CONSIDERATIONS
An investment in this unmanaged unit investment trust should be made with the understanding
of the risks involved with common stocks, LEAPS, and U.S. Treasury notes.
Common stocks are subject to an economic recession and the possible deterioration of either
the financial condition of the issuers of the equity securities or the general condition of the
stock market.
The value of the LEAPS is deducted from the value of the portfolio assets when determining the
value of a unit. As the value of the LEAPS increases, it has a more negative impact on the value of
the units. The value of the LEAPS will also be affected by changes in the value and dividend rates
of the underlying stocks, an increase in interest rates, a change in the actual and perceived
volatility of the stock market and the stocks and the remaining time to expiration. Additionally,
the value of the LEAPS does not increase or decrease at the same rate as the underlying stock.
However, as the LEAPS approach their expiration date, their value increasingly moves with the
price of the stock.
The value of U.S. Treasury notes will be adversely affected by decreases in bond prices and
increases in interest rates.
You should be aware that the portfolio is concentrated in stocks in both the consumer products
and information technology sectors which involves additional risks, including limited
diversification.The companies engaged in the consumer products industry are subject to global
competition, changing government regulations and trade policies, currency fluctuations, and the
financial and political risks inherent in producing products for foreign markets. The companies
engaged in the information technology sector are subject to fierce competition, high research and
development costs, and their products and services may be subject to rapid obsolescence.
Technology company stocks, especially those which are Internet-related, may experience extreme
price and volume fluctuations that are often unrelated to their operating performance.
Options are subject to various risks including that their value may be adversely affected if the
market for the option becomes less liquid or smaller. In addition, options will be affected by
changes in the value and dividend rates of the stock subject to the option, an increase in interest
rates, a change in the actual and perceived volatility of the stock market and the common stock
and the remaining time to expiration.
An investment in a portfolio which includes foreign securities should be made with an
understanding of the additional risks involved, such as currency fluctuations, political risk, the lack
of adequate financial information and exchange control restrictions impacting foreign issuers.
The value of the securities held by the trust may be subject to steep declines or increased volatility
due to changes in performance or perception of the issuers.
This UIT is a buy and hold strategy and investors should consider their ability to hold the trust
until maturity. There may be tax consequences unless units are purchased in an IRA or other
qualified plan.
For a discussion of additional risks of investing in the Trust see the “Risk Factors” section of the
prospectus.
CSBWFS300117