EFTA01788415

From: Daniel Sabba Sent: Friday, November 21, 2014 7:25 PM To: eevacation • .mail. Cc: Subject: Classification: Confidential Jeffrey, An oil idea [C] We are working on ideas to articulate views we heard from clients relating to crude. Specifically, that crude will continue falling in the short time frame, but over the long run will rally. We found the following trade to be very interesting and offer attractive risk reward: Long Dated Knock-In Call on WTI (CL1 Ref: 76) Client buys a call option on CL1. Strike $100/bbl. Expiry: 14-Nov-18. Option only knocks in if on any date before expiry, CL1 settlement price is below $55/bbl Offer price: $1.12/bbl (mid at $0.75/bbl) For comparison, offer for vanilla $100 call is $4.30/bbl If oil touches $50 in the next 3 years and then goes to $125, the option would have an intrinsic value of $25, reaching over 20x payout. Looking forward to connecting on this and other ideas. Daniel Daniel Sabba Key Client Partners Deutsche Bank Securities Inc. Tel. +1 212 454 0857 Mobile +1 917 374 4185 Email [email protected] 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. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA_R1_00112862 EFTA01788415