EFTA01388159

Hi Paul, Great to meet you over the phone today and discuss our derivatives offerings / market color. As mentioned, Southern Financial is fully onboarded to trade OTC equity derivatives here. We've reviewed our docs for listed options and just need 2 simple forms completed (attached). They are pretty straight forward but we're here to answer any questions on them that you have. Per Cievin's comments on short-term upside, below are charts that compare SPY ATM vs 2% out of the money upside in the near-term experies. Vols are in the 8v range for the 2% 0TM calls and as you can see for the next four weeks term structure is flat. We've continued to see the spot up / vol up correlation remain positive and if this theme continues, now is a good entry level into buying inexpensive vol. SPY ATM Calls: SPY 294 CM vs 2/1330 Tenor I Mop I V o l Inter-PetIod Fwd Vol Econemk !Venn I 02mul *dye Earnings Reported (19 5 I % clean, Aufmt a 2018 1%0 de% 95 ISM (tmth) ADP,I4CP, Fait Oeosion 61% redly. A1.10.12 23, 20113 5.96 069% 9.2 8.9 PFI. CPI 641 Rein. Pagel 17, 2018 247 097% 9.2 9.3 70% Fodor. Aup2st 24, 2016 2.90 :02% 9.2 91 F0IVIC rum IAA) 72% Feat August 31, XIS 3.39 1.19% AS 144 fra 24% crispy, Seetereme C7, 2116 375 132% 96 105 iSm nem) ACP. NC P 75% SPY 2% Upside Calls: SPY 219 Call vs 293.30 Fionenk Emits Centel edy• Earring. Reported 1,4 Tenor PM* inumPerlod dyad Vol S I % Vol Friday. &lead 03,1119 0.19 020% 8.3 ini notte,*D.P, POP, P-W4 Ormsion 61% Flom Aeon It 2DM 047 0174i 81 44 PPE CPI 494 Friday. August 17. 2018 076 051% ao A4 70% clean. August 24, 2018 :.05 065% 8.0 a 7 COMcl nye i4.agi 744 Ft432% ,WEIR 31.9319 139 090% 9.2 96 Pa 74% Frlday.ScoternWr C7, 2018 1.69 092% 8.4 101 ISM iocthl, 4CP,NFP 79% Kind regards, Nadean Nadean Novogratz Deutsche Bait Securities Inc. Global Equity Derivative Sales 60 Wall Street, 4th Floor New York, NY 10005 Tel. +1 (212) 250-4960 Cell +1 (917) 623.4547 Email Please click on this link and read the disclaimer: https://ederivatives.db.com/static/disclaimer.html This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Please refer to https://db.com/disclosures for additional EU corporate and regulatory disclosures. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0091575 CONFIDENTIAL SDNY_GM_00237759 EFTA01388159