EFTA02624601.pdf

From: Paul Barrett Sent: Wednesday, September 26, 2018 7:38 PM To: J; Richard Kahn Subject: RE: Financials ok Paul Barrett Alpha Group Capital LLC From: J <[email protected]> Sent: Wednesda , Se tember 26, 2018 3:34 PM To: Paul Barrett >; Richard Kahn Subject: Re: Financia s sell the position On Wed, Sep 26, 2018 at 3:20 PM, Paul Barrett wrote: Jeffrey We are long 114,000 shares of the XLF Financials ETF. XLF is currently at 28.16. Position value is $3.2MM. Current MTM is +$285K. EFTA_R1_01835126 EFTA02624601  I think we should buy some lx2 call spreads against the position: * Buy lx Dec 2018 29 Calls * Sell 2x Dec 2018 31 Calls * Cost 39c I think the Financials will rally into yearend but don't think the ETF will move by more than 9.5% between now and December. This will lever up a move to $31 but forego additional upside beyond $31. If we do finish at the top strike we make 15% net and get called away. Reason: * Q4 seasonals typically positive for Financials * Data from the banks indicate the market is underweight Financials * Very active equity and debt capital markets calendar in Q4 Top 3 positions are JPM, BRK and BAC. Paul Paul Barrett 2 EFTA_R1_01835127 EFTA02624602  please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 3 EFTA_R1_01835128 EFTA02624603