RE: AVGO

From: Paul Barrett [i Sent: 7/13/2018 6:57:15 PM To: jeffrey E. [[email protected]] cc: Richard Kahn Subject: RE: AVGO Attachments: image003.jpg; image004.jpg Importance: — High We own 8000 shares on the thesis that their growing exposure to data center capex spend would be a big positive for the stock. Recommendation: Keep the stock and buy Aug $200 puts on the 8000 shares costing $6.50 or $52,000. Nothing has changed regarding their core business. Data center spending is not going to change based off this M&A transaction. However if | am wrong and the market further penalizes the stock at least our losses are contained. The stock has dropped $40 and | think we could easily recoup our premium if the market buys into the CEO’s reason for the merger. If | never had a position | would absolutely buy the stock using options. | would be selling October $185 puts and buying Oct $220 calls costing 50c/share. Paul Paul Barrett Alpha Group Capital LLC 142 W 57" Street, 11° Floor, New York, NY 10019 CX | Br cae CAPITAL From: jeffrey E. <[email protected]> Sent: Friday, July 13, 2018 2:18 PM To: Paul Barrett Subject: Re: AVGO Again?? How many puts ? What are the alternatives. The fact tgat you iwn thd stock at a higher price is affecting your decision. Sorry. This is judt ridiculous!!! Would you buy the stock here . ???? If you would would you also buy puts ??? My patience is at its end On Fri, Jul 13, 2018 at 2:13 PM Paul Barrett i wrote: My initial recommendation this morning was to buy the $200 Aug puts. | still think that is the best idea. The stock is now down 16% on a deal that no one fully understands. The CEO has a good track record regarding mergers. So | think it makes sense to keep the stock and own protection for the next 35 days until we hopefully get more clarity from management. Paul Barrett HOUSE_OVERSIGHT_031818