EFTA02600786.pdf

From: Paul Barrett Sent: Friday, July 111.11 To: jeffrey E. Cc: Richard Kahn Subject: RE: AVGO We own 8000 shares on the thesis that their growing exposure to data center capex spend would be a big positive for the stock. Recommendation: Keep the stock and buy Aug $200 puts on the 8000 shares costing $6.50 or $52,000. Nothing has changed regarding their core business. Data center spending is not going to change based off this M&A transaction. However if I am wrong and the market further penalizes the stock at least our losses are contained. The stock has dropped $40 and I think we could easily recoup our premium if the market buys into the CEO's reason for the merger. If I never had a position I would absolutely buy the stock using options. I would be selling October $185 puts and buying Oct $220 calls costing 50c/share. Paul Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor, New York, NY 10019 1 EFTA_R1_01788011 EFTA02600786 From: Jeffrey E. <[email protected]> Sent: Friday, July 13, 2018 2:18 PM To: Paul Barrett Cc: Richard Kahn Subject: Re: AVGO Again?? How many puts ? What are the alternatives. The fad tgat you iwn thd stock at a higher price is affecting your decision. Sorry. This is judt ridiculous!!! Would you buy the stock here . ???? If you would would you also buy puts ??? My patience is at its end On Fri, Jul 13, 2018 at 2:13 PM Paul Barrett wrote: My initial recommendation this morning was to buy the $200 Aug puts. I still think that is the best idea. The stock is now down 16% on a deal that no one fully understands. The CEO has a good track record regarding mergers. So I think it makes sense to keep the stock and own protection for the next 35 days until we hopefully get more clarity from management. Paul Barrett Alpha Group Capital LLC 142 W 57 <https://maps.google.com/?q=142+W+57&entry=gmail&source=g> th Street, 11th Floor, New York, NY 10019 From: Jeffrey E. <[email protected] <mailto:[email protected]» Sent: Friday, July 13, 2018 1:55 PM To: Paul Barrett Cc: Richard Kah Subject: Re: AVGO 2 EFTA_R1_01788012 EFTA02600787  lye had enough!!!! Which puts ??? On Fri Jul 13 2018 at 1:40 PM Paul Barrett wrote: Any thoughts on the AVGO Aug puts? Stock trading at 204.50. Aug puts now $6.50 Paul Barrett Alpha Group Capital LLC 142 W 57 <https://maps.google.com/?q=142+W+57&entry=gmail&source=g> th Street, 11th Floor, New York, NY 10019 From: Paul Barrett Sent: Friday, July 13, 2018 9:42 AM To: jeffrey E. <[email protected] <[email protected]»; Richard Kahn u.Ject: ' : Jeffrey I understand your frustrations and appreciate your willingness to figure out a solution. I have some ideas which I will send you over the weekend if that is OK. Re Broadcom: the stock is up $1.20 at $211.50. After the initial shock reaction of yesterday, there has been a lot of focus on the cost synergies etc. but very little conviction in revenue opportunities. However until we hear from management as to the overall intentions of the deal, uncertainty will linger. 3 EFTA_R1_01788013 EFTA02600788  This morning the pricing is as follows: Aug 200 Puts cost $4.10 Sept 200 Puts cost $7.90 Earning are on 08/30. So worst case is the uncertainty lingers until then which would argue to buy the Sept puts. However I still prefer buying the Aug puts as I would fully expect more clarity from management before August expiry. Paul Paul Barrett Alpha Group Capital LLC 142 W 57 <https://maps.google.com/?q=142+W+57&entry=gmail&source=g> th Street, 11th Floor, New York, NY 10019 From: Jeffrey E. <[email protected] <mailto:[email protected]» Sent: Friday, July 13, 2018 7:11 AM To: Paul Barrett ; Richard Kahn u je : Im not angry, sorry, it is sad. it is apparent that you have no experience trading. we both made a mistake. . the spy trades were the results of a rank amatuer. . you took a portion on the direction of the market. 4 EFTA_R1_01788014 EFTA02600789 ok. you decided to play it extra short time and short. . why? becaue the options are cheaper. ? knowing full well that time premium was running. . first silly move. . I allowed as promised to give you authority. . you set a target. . it hit the traget , you moved in back. based on media reporting on trump visit? you didnt act. the market dipped and you panicked. . AMATEUR . wrong options wrong timing, no discipline and as a percentaage of investment. a one day dip fof 25%. wanting to buy the highter strike , is ok. but why the same month? why the same moment. why the same index. . sorry. I have taught this for many years. and your grade is an F. not one good move in many. . re broadcom. the crack happend in the morning. options were higher. no alternative presented. no analysis. , this is no way to manage money. I have lost a great deal of money hoping you would be able to do as you promised you could . would. . Had you told me , Jeffrey I d like to try a new job as a manager lets start slow I can learn . i would be less annoyed. you told me you had great confidence knew the risks and truly believed you would be able to raise money .do well and prosper. . If it were not you, this would have ended months ago. . we should work on a solution . not sure yet what shape it takes. please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved please note 5 EFTA_R1_01788015 EFTA02600790 The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 6 EFTA_R1_01788016 EFTA02600791