Correct. My RAOB Program does use Method #2 for MUCAPE calculation ( highest theta-w ). I just added Option #1 in the new RAOB 6.9 program. This option calculates CAPE at 1 mb intervals for the entire lower 300 mb layer (or whatever layer you identify) and picks the level with the highest CAPE value. However, it is very time consuming -- taking 2 to 3 extra seconds for an average PC.