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Subject: Fw: GBP + AAPL [C] From: Vahe Stepanian ‹ > Date: Thu, 05 Dec 2013 13:00:35 -0500 To: Paul Morris Cc: Classification: Confidential Paul - would like to send JE the below as a follow up to Tuesday. If he wants to write calls vs. AAPl, think now is an opportune time. Let me know what you think Thanks, Vahe Good Afternoon Jeffrey - following up Tuesday's email (included below): 1) WSJ has reported that AAPL has signed a deal w/China mobile, providing it a boost in the world's largest mobile market. Shares have reacted, reaching a new 52 wk. high @ —$572 (vs. $565.00 close yesterday) on the back of the report. Consider selling Jan 595 or 600 Calls (currently $12.20 and $10.70 bid, respectively). 2) We believe the GBP trade is still relevant ahead of payrolls tomorrow. ADP came in ahead of street expectations yesterday (215k vs. 170k expected; revised October +54k), and street is calling for headline number of +185k tomorrow morning. GBP is currently —1.6350 (vs. USD), but is bouncing around today and we'd look to enter trade on additional GBP strength. Thank you, Vahe (212) 454-1539 Forwarded by Vahe Stepanian/db/dbcom on 12/05/2013 08:50 AM From: dbcom Vahe Stepanian/db/- To: [email protected], EFTA01479352 Cc: , Paul Morris/db/- dbcom@DBAMERICAS Date: AM Subject: [C] 12/03/2013 10:20 GBP + AAPL Classification: Confidential Good Morning Jeffrey, Hope you had a great holiday weekend. As you have likely seen, GBP is currently at a 2 yr. high vs. USD (@ —1.64; see graph below). The most recent move up has been attributed to a rise in construction activity for a seventh month, the fastest pace since August 2007. I recall you mentioned in our meeting that your view is to sell GBP if it approaches 1.65. For what it's worth, our DB analysts have a bearish view on the pound. A recent (DB) FX note discusses reasons why it's tough to build a fundamentally bullish case for sterling with the market pricing the first BoE hikes by mid-2015 (well ahead of the ECB and even the Fed). We see potential for GBP to reverse to the mid-1.50s by year-end. With that said, we priced up a few options that I've included below - consider selling a call, buying a put or a risk reversal. Recognize that GBP vol. is currently relatively low (vs. historical levels). Spot ref = 1.6397 1) Sell European GBP Call on GBP/USD Strike: 1.67 Notional: GBP 5,988,023.95 (or -$10mm) Expiry: Tue 03-Jun-2014 (6m) EFTA01479353 Settlement: Thu 05-Jun-2014 Premium: USD -103,400 2) Sell European GBP Call on GBP/USD Strike: 1.70 Notional: GBP 5,882,352.94 (or —$10mm) Expiry: Wed 03-Dec-2014 (12m) Settlement: Fri 05-Dec-2014 Premium: USD -123,900 3) Buy European GBP Put on GBP/USD Strike: 1.6376 (ATMF) Notional: GBP 5,988,023.95 (or -$10mm) Expiry: Tue 03-Jun-2014 (6m) Settlement: Thu 05-Jun-2014 Premium: USD 219,365.27 Also worth mentioning — AAPL has run up quite a bit in the past few days (currently trading @ —$560; up from $519.80 on 11/22). I know you're looking to sell calls, will provide levels if still interested. Recall you're long 2k AAPL @ —$529.06. Have a great day. Thank you, Vahe (Embedded image moved to file: pic05051.gif) Vahe Stepanian Associate I Wealth Investment Coverage Deutsche Bank Securities Inc. agement mai EFTA01479354 (Embedded image moved to file: pic20883.gif) EFTA01479355