From: Tazia Smith Sent: 1/22/2014 11:46:43 AM To: CC: Paul Morris ; Vinit Sahni • Vahe Stepanian I; Nay Gupta Subject: B XLK Calls - low implied vol (II Attachments: pic13458.gif; pic02600.gif; pic09496.gif; pic31455.gif; pic22707.gif; pic26863.gif; pic09603.gif Classification: For internal use only Jeffrey - 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 537 strike calls are offered —72bps (offer vol: 11.9%). Jun 538 calls are offered —1% (offer vol: 11.8%). Spot reference of 535.88 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 5575 strike are presently $7.35 (-1.3%) bid (vol offer: 43.3%, 5555.35 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 & 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: Nav Gupta/db/dbcom@DBEMEA To: Date: 01/22/2014 09:43 Am Subject: OTC Call options on XLK uS (tech) look good value at 13-14% vol [I] Classification: For internal use only CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 101164 CONFIDENTIAL SDNY_GM_00247348 EFTA01446780