EFTA01362944.pdf

GLOSSARY - OPTION DEFINITIONS Put Option ("Puts") — An option contract Iron Condor ("Condors") — An iron Call Option ("Calls") — An option giving the owner the right, but not the condor is made up of two spreads — a contract giving the owner the right, but obligation, to gain short exposure to an put spread and a call spread with the not the obligation, to gain long exposure underlying security at a specified price same expiration and four different to an underlying at a specified strike within a specified time. Selling an index strikes. Selling an iron condor is price within a specified expiration time. put results in net premiums received. essentially selling both sides of the Selling a call results in net premiums underlying instrument's potential price received. The risk of monetary loss is quantifiable path by simultaneously shorting the as: (strike price of the option written) same number of calls and puts, then The risk of monetary loss in a short call is (number of option contracts)* (contract covering each position with the unquantifiable, but is reduced by initial multiplier), and is reduced further by purchase of further out of the money net premium received. initial net premium received. call(s) and put(s) respectively. The risk of monetary loss in a short condor is defined by the max loss of the widest option spread but is reduced by initial net premium received. Payoffs at Expiration: Short Iron Condor - (CYES) Short Call - (CWS) Profit Premium Premium f Collected Premium Collected Collected Underlying Underlying Underlying Puts struck below Calls struck above underlying level underlying level at inception Call spreads at inception Put spreads struck Loss struck above below underlying underlying level level at inception at inception For mo,p in.dopen o.',c•,,T,on 'net. And ot sits, sisat.sz 'Pt plq-gev.a t. htto://www.ostbornedutation.orgicontent/clam/o4t/documentiltiteratureililes/ooksas-stratettet-quiektuide.pel CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0052699 CONFIDENTIAL SDNY_GM_00198883 EFTA01362944