EFTA02654095.pdf

From: Ens, Amanda < Sent: Monday, April 3, 2017 1:59 PM To: Jeffrey E. Cc: Richard Kahn Subject: RE: AAPL trade recap $143.90 spot Buy May 19th $150 call for $1.78 or Buy May 19th $150/$160 call spread for $1.42 or Buy May 19th $150 call /sell a $160 call with a continuous knock-in at $170 for —$1.95 (gives you an extra $9.99 potential upside participation) Buy June 16th $150 call for $2.47 or Buy June 16th $150/$160 call spread for $1.81 or Buy June 16th $150 call /sell a $160 call with a continuous knock-in at $170 for - $2.40 (gives you an extra $9.99 potential upside participation) Buy July 21st $150 call for $3.45 or Buy July 21st $150/5165 call spread for $2.83 From: Ens, Amanda Sent: Friday, March 31, 2017 10:22 AM To: 'jeffrey E.' [email protected]> Cc: 'Richard Kahn' < Subject: RE: AAPL trade recap Off of $144.25 spot, indicatively EFTA_R1_01898371 EFTA02654095 Buy May 19th $150 call for $2.00 or Buy May 19th $150/$160 call spread for $1.57 or Buy May 19th $150 call /sell a $160 call with a continuous knock-in at $170 for - $2.05 (gives you an extra $9.99 potential upside participation) Buy June 16th $150 call for $2.69 or Buy June 16th $150/$160 call spread for $2.00 or Buy June 16th $150 call /sell a $160 call with a continuous knock-in at $170 for —$2.55 (gives you an extra $9.99 potential upside participation) Buy July 21st $150 call for $3.60 or Buy July 21st $150/$165 call spread for $2.95 We still have high conviction on replacing long AAPL stock positions with calls or call spreads. From our derivatives strategist: Since its pre-election lows on 4-Nov, AAPL has gone up 30%, climbing last week to its all-time highs and recording the second best performance among the 50 largest stocks in the S&P 500 (albeit at almost half the volatility). With 3m ATM implied volatility having trended lower for the past two years and currently sitting at its 6th %-ile, we favor replacing long stock positions via cheap calls to maintain upside exposure while limiting losses to the (low) upfront premium paid. For investors looking to reduce the upfront premium, we suggest selling short dated OTM calls to help fund short dated ATM calls, which levers the relatively flat upside skew (Chart below) 2 EFTA_R1_01898372 EFTA02654096 Amanda Ens Director Bank of America Merrill Lynch Merrill Lynch, Pierce, Fenner & Smith Incorporated > From: Ens, Amanda Sent: Wednesday, March 29, 2017 11:47 AM To: leffrey E.' <[email protected] <mailto:[email protected]»; 'Richard Kahn' < Subject: AAPL trade recap Jeffrey, Southern Trust Sold 100,000 shares AAPL at $143.55 Bought AAPL $150 19-May-2017 expiry calls on 2,500 contracts at $1.95 ($2.01 net of $6/contract commission) Premium: $502,500 Options will be booked OTC as listed option look-alikes Please let me know if you'd like to work an order on the balance. 3 EFTA_R1_01898373 EFTA02654097 Thanks, Amanda Amanda Ens Director Bank of America Merrill Lynch Merrill Lynch, Pierce, Fenner & Smith Incorporated > This message, and any attachments, is for the intended recipient(s) only, may contain information that is privileged, confidential and/or proprietary and subject to important terms and conditions available at http://www.bankofamerica.com/emaildisclaimer. If you are not the intended recipient, please delete this message. 4 EFTA_R1_01898374 EFTA02654098