EFTA02589533

From: jeffrey E. <[email protected]> Sent: Monday, September 15, 2014 4:46 PM To: Steven Sinofsky Subject: Re: JPM no„ you can always buy back and extend On Mon, Sep 15, 2014 at 12=29 PM, Steven Sinofsky < <mailto > wrote: Do I need to worry about people exercising cov=red calls early? THis is what JPM said. I'm not asking them to confirm your advice=just help me to execute. >>> JPM dude says I do agree that the covered call strategy is a disciplined way to divest yo=r position over time (assuming the stock remains through the call strike) =hile making the "cost to manage" net positive. We do=apologize for the misunderstanding as our primary goal in the below analys=s was to hedge your existing position. Let me check with our desk to get pricing on calls (OTC) and also provide y=u with listed pricing as well so you can compare. The listed options=will likely be cheaper (a clear positive) but can be exercised early by th= holder which means your taxable event could be pulled forward. We=E2 II need to weigh our aversion to this against whatever price discr=pancy exists. That said, I like using listed options for covered call strategies especial=y if you don't mind building the position over a few days. L=sted options provide flexibility (easy to close-out if necessary) as well =s full price transparency. =br> please note=br> The information contained in this communication is confidential= may be attorney-client privileged, may constitute inside information, =nd is intended only for the use of the addressee. It is the property of=br>JEE Unauthorized use, disclosure or copying of this communication=or any part thereof is strictly prohibited and may be unlawful. If you =ave received this communication in error, please notify us immediately =y return e-mail or by e-mail to [email protected] <mailto:[email protected]= target=> , and destroy this communic=tion and all copies thereof, including all attachments. copyright -all =ights reserved EFTA_R1_01771001 EFTA02589533