Subject: B XLK Calls - low im lied vol [I] From: Tazia Smith < Date: Wed, 22 Jan 2014 11:46:43 -0500 To: [email protected] Cc: Paul Morris < Vinit Sahni < Nay Gu•ta < Vahe Stepanian Classification: For internal use only Jeffrey - Nay highlights XLK OTC calls below; we like this big-cap US tech underlier. The listed market offer s 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 ov er 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. (Embedded image moved to file: pic13458.gif) Tazia Smith Director I Key Client Partners - US Deutsche Bank Securities Inc Deutsche Asset a Wealth Management 345 Park Avenue, 26th Floor New York, NY 10154 Tel. Fax Mobile Email (Embedded image moved to file: pic02600.gif) Forwarded by Tazia Smith/db/dbcom on 01/22/2014 10:45 AM From: Nay Gupta/db/dbcom@DBEMEA To: [email protected], [email protected], Date: 01/22/2014 09:43 AM Subject: OTC Call options on XLK US (tech) look good value at 13-14% vol [I] EFTA01462357