EFTA01446781

xLK is a S13.7bn tech sector ETF. Investors bullish tech should consider short dated OTM calls on XLK which combine low levels of implied vol and an efficient underlying Trades: Buy 3m expiry XLK 3% OTM call @ 1.24% (offer vol: 12.8) Buy 6m expiry XLK 6% OTM call @ 1.44% (offer vol: 13.6) spot ref: XLK Index = 35.85 XLK top 10 Holdings AAPL 14% GOOG 9.3% MSFT 8% IBM 5.6% T 5.1% vZ 4% QCOM 3.7% CSCO 3.5% V 3.4% Past Returns and Implied Vol (Embedded image moved to file: pic09496.gif) Compared to most of its components, XLK has relatively low implied volatility vs returns XLK Price (Embedded image moved to file: pic31455.gif) short dated implied volatility is low (Embedded image moved to file: pic22707.gif) Blue Line Implied vol I white Line Delivered vol KCP Capital Markets London vinit sahni I Nav Gupta I vanshree verma (Embedded image moved to file: pic26863.gif) Nav Gupta managing Director Deutsche Bank AG, Filiale London Deutsche Asset & wealth Management 105/108 old Broad St (Pinners Hall), EC2N lEN London, United Kingdom 111.111 Any proposed ideas are being delivered to you by the DeAwM Key client Partners ("KCP") London desk for discussion purposes only, and do not create any legally binding obligation on the part of Deutsche Bank AG and / or its affiliates ("DB"). These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients are Professional investors (as defined by MiFID), who understand the strategy, characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. All trades on proposed ideas shall be subject to the relevant internal approvals prior to execution. (Embedded image moved to file: pic09603.gif) CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 101165 CONFIDENTIAL SDNY_GM_00247349 EFTA01446781