EFTA01380930

Kind regards, Nadean From: Paul Barrett [mailto Sent: Thursday, July 26, 2018 10:49 PM To: Nadean Novogratz Cc: Martin Zeman; Stewart Oldfield; Xavier Avila; Davide-A Sferrazza; Devin Anderson Subject: RE: Follow-up Thanks Nadean Will get the forms filled out and look at the pricing. Best, Paul Paul Barrett Alpha Group Capital LLC 142 W 579' Street, 11* Floor, New York, NY 10019 a ALPHA GROUP CAPI TAL From: Nadean Novogratz <nadean.novogratz@db.com> Sent: Thursday, July 26, 2018 5:01 PM To: Paul Barrett < Cc: Martin Zeman < >; Stewart Oldfield < >; Xavier Avila >; Davide-A Sferrazza < >; Devin Anderson < Subject: Follow-up Hi Paul, Great to meet you over the phone today and discuss our derivatives offerings / market color. As mentioned, Southern Financial is fully onboarded to trade OTC equity derivatives here. We've reviewed our docs for listed options and just need 2 simple forms completed (attached). They are pretty straight forward but we're here to answer any questions on them that you have. Per Devin's comments on short-term upside, below are charts that compare SPY ATM vs 2% out of the money upside in the near-term experies. Vols are in the 8v range for the 2%OTM calls and as you can see for the next four weeks term structure is flat. We've continued to see the spot up / vol up correlation remain positive and if this theme continues, now is a good entry level into buying inexpensive vol. SPY ATM Calls: CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0079509 CONFIDENTIAL SDNY_GM_00225693 EFTA01380930