From: Tazia Smith Sent: 1/22/2014 11:46:43 AM To: [email protected] CC: Paul Morris Subject: ; Vinit Sahni • Vahe Stepanian I B XLK Calls - low implied vol (II Classification: For internal use only Jeffrey - ; Nav Gupta 1 ]; Nav highlights XLK OTC calls below; we like this big-cap US tech underlier. The listed market offers comparable low implied vol entry point. The March $37 strike calls are offered —72bps (offer vol: 11.9%). Jun $38 calls are offered —1% (offer vol: 11.8%). Spot reference of $35.88 on XLK. Meanwhile, your AAPL shares are up —1.1% ahead of earnings on Monday, largely due to Ichan tweeting today that he has been buying (source: Bloomberg, 1/22/14). January implied vol on AAPL shares is over 40% ahead of the earnings announcement (skew is fairly flat between 80-120%). Note: Jan31 $575 strike are presently $7.35 (-1.3%) bid (vol offer 43.3%, $555.35 spot ref). You could sell those if you're more bearish than Ichan into earnings! (i suggest that tongue-in- cheek, i suspect you'd rather just keep the upside potential in your shares, but let us know). Let us know your thoughts on XLK. Best Regards, Tazia Indicative levels only. Subject to market movement. Source: Bloomberg, 1/22/14. Tazia Smith Director I Key Client Partners - US Deutsche Bank Secunties Inc Deutsche Asset & Wealth Management 345 Park Avenue, 26th Floor Net Tel. Fax Mobil Email Pacim*Palf mem. — Forwarded by Tazia Smithidb(dbcom on 01:22/2014 leas AM --- From. Nav Guptaidbfdbcom@DBEMEA To. Date: 01,22,2014 09.43 AM Sublect: OTC Call options on XLK US (tech) look good value at 13-14% vol III CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 123246 CONFIDENTIAL SDNY_GM_00269430 EFTA01461290