EFTA02560492.pdf

From: Paul Barrett Sent: Monday, June 25, 2018 5:50 PM To: Jeffrey E. Cc: Richard Kahn Subject: New Idea for your approval Jeffrey, New Trade Idea: SPX down 1.50% today on tariff fears= I recommend buying a position in each of the following: • Jul 280 SPY calls for $0.40 • Aug 280 SPY calls for $1.44 • Implied vol at 10%. • Tariff related sell-offs have offered good trading op=ortunities. The risk around retaliation is growing but if we can buy these=calls with a 10% implied vol, I think these could work very well at the first sign of any reconciliatory comments from Washington= I would look to trade out of these if we get a bounce back to 2750 on SPX=this week. If we don't get the bounce by Friday I would sell.</=:p> Also to further clean up the portfolio I would recom=end the following over the coming days: 1. Sell BUD. It is a=small position with too much reliance on EM to make a meaningful impact ri=ht now. 2. Sell BAC. Also a very small position. Would rather re-allocate to KR= (regional bank exposure). 3. MSFT, AVGO and Equinix — part of the data c=nter theme. I think this theme has legs but MSFT and EQIX positions too sm=ll. Sell those. 4. JD.Com - sell if it drops below $38. It is the Amazon of Chi=a. However it cannot seem to break higher due to margin concerns. Currentl= at $39.43. Paul Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor,=New York, NY 10019 =p> EFTA_R1_01721488 EFTA02560492 paul@a=phagroupcapital.com <mailto:[email protected]> 2 EFTA_R1_01721489 EFTA02560493