From: Richard Kahn To: Jeffrey Epstein <jeevacation®gmail.com> Subject: Fwd: Using Russell puts as a proxy to short HY market. [CI Date: Wed, 02 Sep 2015 10:17:54 +0000 !Mine-Images: image003.jpg; image004.png; image005.png; image006.png One good trade idea over two years so Daniel feels the need to resend Sent from my iPhone Begin forwarded message: From: Daniel Sabba Date: September I, 2015 at 7:53:30 PM EDT To: "'Jeffrey E.'" <eevacationc2) mail.com> Cc: Paul Morris Dwyer" Subject: RE: Using Ru , Stewart Oldfield , Vahe Stepanian "Arian "'Richard Kahn" ell puts as a proxy to short HY market. IC] Classification: Confidential Trying to keep it honest, we looked into PnL of this idea today. It wasn't bad. The idea was to use 3-month, 95% Russell 2000 index (RTY) puts to hedge a High Yield (HY) selloff. On 6/25, with RTY at —1283 — clients could have purchased Sept 1220 puts @ - 520/contract. Given market volatility last week, clients could have unwound the trade at - 5120/contract Russell 2000 Index Sept 1220 Put — Historical chart Jan Mae np Hay )in Jul Z0IS From: Daniel Sabba Sent Thursday, June 25, 2015 10:52 AM To: Jeffrey E. Cc Paul Morris; Stewart Oldfiekl; Vahe Stepanian; Mane Dwyer; Richard Kahn Subject Using Russell puts as a proxy to short MV market. [C] Classification: Confidential Jeffrey. I called you yesterday and left a message with M. EFTA01185917