EFTA01415010.pdf

Subject: Paul Barrett - Southern Financial LLC Intro Call at 3pm today From: Martin Zeman Date: Thu, 26 Jul 2018 13:15:38 -0400 To: Nadean Novogratz Devin Anderson Courteney B Fornal Cc: Davide-A Sferrazza Stewart Oldfield Xavier Avila Nadean, Devin, Paul Barrett manages money for Jeffrey Epstein (a NY/Virgin Islands based billionaire, formerly Bear Stearns then on his own). The entity that is onboarded is Southern Financial LLC (Paul has power of attorney to trade the account). Paul trades across asset classes. For a while he was part of the ECM syndicate, but got out of it as he was disappointed by the quality of deals DB gets. He trades with us in cash equities/listed options (a lot of focus on tech names, Jeffrey has owned a huge chunk of Apple for several years, but lately also gaming industry for example with CD Project in Poland or Ubisoft). He also trades FX and Rates OTC with us, and we recently extended him to credit where he looked at IG Payer or Payer spreads as a hedge for his overall fixed income/equities portfolio. Paul worked at JPM GIO (equivalent of KCP) until Spring 2017 where he managed their US business, and he previously also managed the JPM FX Private bank part of the business I believe. Originally from South Africa, big fan of Liverpool FC. Golf player. Stewart pitched him worst-off puts on pairs of stocks which is business he did a lot of back at CS. Stewart, feel free to add any more color... EFTA01415010 From: Martin Zeman Sent: Wednesday, July 25, 2018 12:43 PM To: 'Paul Barrett <M > Davide-A Sferrazza ourteney B Fornal Subject: [/] Trade Idea - Continued FAANG upside Paul, I'd like to introduce you to our Equity Derivatives sales team downtown. The team is run by Devin Anderson and includes all the CC:d people that you don't already know. They have a ton of great ideas and produce good content that I think you could benefit from. Considering your focus on tech stocks, below is an idea that the team is showing out today. I will reach out to you later this afternoon so we can put something on the calendar for a call later today or tomorrow. Buy worst of calls on FB, AMZN, AAPL, NFLX, and GOOGL These FAANG stocks have had a massive run over the past few years but given sentiment around these names, the party could continue for longer. Outright long positions may be hard to hold, especially with upcoming earnings for FB (today after close), AAPL (31st July), and AMZN (26th July), so calls cheapened by the 'worst of feature can provide a low cost way to position for a continuing rally in the theme. Buy Oct-18 ATM worst of call on FAANG for 1.75%. For a longer-dated trade, Buy Jan-19 ATM worst of call on FAANG for 2.4% Worst-off-calls are significantly cheaper than equally weighted basket and vanilla equivalents EFTA01415011  Expiry ATM Call Premia 18-Oct 19-Jan Worst-of-call 1.75% 2.40% Equally Weighted Basket 4.80% 7.10% FB 5.40% 8.10% AMZN 5.70% 8.60% AAPL 3.85% 5.85% NFLX 7.65% EFTA01415012  10.95% GOOGL 4.00% 6.50% Cost of WoC looks attractive in context of historical payoffs for both Oct-18 and Jan-19 maturities {cid:[email protected]} {cid:[email protected]} Martin fcid:[email protected] Martin Zeman Director I Key Client Partners Deutsche Bank Wealth Management DB Securities Inc 345 P -0004 New York, NY, USA Tel. Mobile Email 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 EFTA01415013 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. EFTA01415014