EFTA01437005.pdf

Subject: XPO trade cost structure From: Martin Zeman Date: Fri, 20 Jul 2018 12:02:57 -0400 To: "Paul Barrett ( Cc: Stewart Oldfield Xavier Avila Davide-A Sferrazza Liam Osullivan November 2018 expiry costless call spread collar to take advantage of recent uptick in skew (expensiveness of puts vs calls): Ref. XPO $101.17 Sell Nov 95 put (6% otm) @ $5.30 vs Buy Nov 105 call (3.8% otm) @ $7.10 Sell Nov 125 call (23% otm) @ $1.80 Trade offers tremendous upside leverage should XPO trade up near DB price target of $133.00. Max profit limited to difference in call strikes, or $20.00, if XPO trades $125 or higher at expiry Risk to this trade is if XPO trades below $95 and you get put stock at that level {cid:[email protected]} Martin Zeman Director I Key Client Partners Deutsche Bank Wealth Management DB Securities Inc EFTA01437005 345 Park Avenue 10154-0004 New York, NY, USA Tel. Mobi Emai KCP products and services are intended and available only for persons who are sophisticated institutional investors within the meaning of the FINRA Rule 4512(C)(3), and who are capable of evaluating the strategies, characteristics and investment risks of, and exercising independent judgment in evaluating, the ideas and products discussed herein. Trades and transactions are subject to relevant internal approvals of DBSI or its affiliates prior to execution, and the execution of any transaction or idea discussed herein is conditional on your becoming a client of Deutsche Bank. Key Client Partners (KCP) products, investment ideas and solutions and related matters discussed herein are provided for discussion purposes only, and strictly on a non-advisory basis. The KCP Americas desk does not provide investment advice. The information set forth herein is confidential and personal to you and is being presented for your information and for discussion purposes only. Any reproduction and/or redistribution thereof (in whole or in part) or disclosure of its content without our written consent is strictly forbidden. This communication does not create any legally binding obligation on the part of DBSI or any of its affiliates. This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Please refer to https://db.com/disclosures for additional EU corporate and regulatory disclosures. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA01437006