EFTA Document EFTA01375727

From: Nadean Novogratz Sent: 7/26/2018 5:01:05 PM To: Paul Barrett CC: Martin Zeman • Stewart Oldfield ; Xavier Avila ; Davide-A Sferrazza Devin Anderson Subject: Follow-up Attachments: Options Execution Agreement (AUG15).pdf; Options Questionnaire (AUG15).pdf 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 dots 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 Devin'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% OTM 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 1)34 011 Vt 21020 Rico Tent 5 I % Vol inter.Perfirirtvd Vol Eton omk Events Cumulative Comings Reported 00 Pudgy, &gust a 2018 140 649% 55 151A 02000, AOP,. %FP, I:064C Deastan 61% Friday. Auin IC. 2018 :96 069% 92 89 PP]. CPI Fliday.Autest 17.2018 2.57 0.87% 92 9.3 7774 Friday. AugsSt 24, 2015 2.90 :02% 9 2 9.1 refeC mini (Awe 72% Friday, Mpg 33.1038 338 1.19% 9.5 1,14 Pa 74% irisay.Seacktnber 07, 2018 1 75 :12% 9 6 10 5 ISM (both), ACP . NFO 75% SPY 2% Upside Calls: SPY US Call vs 283.90 Feenomk Events Cum' 06v* timings Reported pc Tow Irk. 1ntar.Porlod Nod Vol S I % Vol Friday, August a 2018 0.19 020% 8.3 ISM Moth), ADP„Plf P, cC1 Oeesien 61% today, Au6vg 2016 047 017% 81 64 PM. CPI 64. Friday. August 17.2018 076 051X 80 84 70% Filmy. August DI, MIS :09 065% 8.0 Si GCMG mrat IA.Agi 72% rtidag. Aistid 31. 2". 3.9 (18018 82 96 PCf 74% Frk245.540tember C7, 2018 :69 092% 8.4 la 1 ISM tooth), ADP, Nr P 79% Kind regards, Nadean Nadean Novogratz Deutsche Bank Securities Inc. Global Equity Derivative Sales 60 Wall Street. 4th Floor New Tel. Cell FFJnai Please click on this link and read the disclaimer: https://ederivatives.db.com/statiddisclaimer.html CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0071300 CONFIDENTIAL SDNY_GM_00217484 EFTA01375727