EFTA01365024.pdf

Overview of Weekly options Weekly options in AAPL • The OBOE launched Weekly options in October 2005. These were originally only on the stock began to be listed in History S&P500 June 2010 • The OBOE expanded the product in June 2010 to include more underlyings This coincides roughly • Since June 2010. Weekly options are listed before the open on Thursdays with the development of Listing • Currently, the AAPL Weeklys are part of the "expanded" program and have 6 expirations. A the Friday / Monday trading pattern new expiration is added every week • When the OBOE introduced Weeklys. it stated that they would provide an "efficient way to trade options specifically around certain news or events — such as economic data or earnings announcements" Purpose • Trading options instead of stock is a convenient way to lever positions around events • Unlike the broader market. trading in AAPL options is much more skewed towards calls than puts • We have found little evidence of institutional trading in these options • This means the majority of trading is done by: Trading — High frequency traders — Retail investors Deutsche Bank 4 r:(1 .ttF CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0055614 CONFIDENTIAL SDNY_GM_00201798 EFTA01365024