EFTA02710081.pdf

From: Steven Sinofsky < Sent: Monday, September 15, 2014 4:29 PM To: Jeffrey Epstein Subject: JPM Do I need to worry about people exercising covered 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 you= position over time (assuming the stock remains through the call strike) wh=le making the "cost to manage" net positive. We do apologi=e for the misunderstanding as our primary goal in the below analysis was to=hedge your existing position. Let me check with our desk to get pricing on calls (OTC) and also provide yo= with listed pricing as well so you can compare. The listed options will l=kely be cheaper (a clear positive) but can be exercised early by the holder=which means your taxable event could be pulled forward. We'll need=to weigh our aversion to this against whatever price discrepancy exists. That said, I like using listed options for covered call strategies especiall= if you don't mind building the position over a few days. Listed o=tions provide flexibility (easy to close-out if necessary) as well as full p=ice transparency.=?xml version=.0" encoding=TF-8"?> <!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/PropertyList-1.0.dtd"> <plist version=.0"> <dict> <key>date-last-viewed</key> <integer>0</integer> <key>date-received</key> <integer>1410798573</integer> <key>flags</key> <integer>8590195717</integer> <key>gmail-label-ids</key> <array> <integer>7</integer> <integer>27</integer> </array> <key>remote-id</key> <string>439239</string> </dict> </plist> 1 EFTA_R1_02120239 EFTA02710081