Document Text Content
From: Paul Barrett
Sent: 7/13/2018 6:57:15 PM
To: jeffrey E. [jeeyacation@gmail.com]
CC: Richard Kahn
Subject: RE: AVG°
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 I am wrong and the market further penalizes the stock at least our losses are contained. The stock has
dropped $40 and I think we could easily recoup our premium if the market buys into the CEO's reason for the merger.
If I never had a position I would absolutely buy the stock using options. I would be selling October $185 puts and buying
Oct $220 calls costing 50c/share.
Paul
Paul Barrett
Alpha Group Capital LLC
142 W 57th Street, 11th Floor, New York, NY 10019
ALPHA GROUP
CAPITAL
From: jeffrey E. <jeevacation@gmail.com>
Sent: Friday, July 13, 2018 2:18 PM
To: Paul Barrett
Cc: Richard Kahn
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 .7777 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 wrote:
My initial recommendation this morning was to buy the $200 Aug puts. I 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 I 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
Alpha Group Capital LLC
142 W 57th Street, 11th Floor, New York, NY 10019
alALPHA GROUP
CAPITAL
I
I
From: jeffrey E. <jeevacation@gmail.com>
Sent: Friday, July 13, 2018 1:55 PM
To: Paul Barrett
Cc: Richard Kahn <:_____________________________________
Subject: Re: AVGO
lye had enough!!!! Which puts ???
On Fri, Jul 13, 2018 at 1:40 PM Paul Barrett wrote:
Any thoughts on the AVGO Aug puts? Stock trading at 204.50.
Aug puts now $6.50
Paul Barrett
Alpha Group Capital LLC
142 W 57th Street, 11th Floor, New York, NY 10019
al
ALPHA GROUP
CAPITAL
From: Paul Barrett
' Sent: Friday, July 13, 2018 9:42 AM
To: jeffrey E. <jeevacation@gmail.com>; Richard Kahn <
I Subject: RE:
Jeffrey
I understand your frustrations and appreciate your willingness to figure out a solution. I have some ideas which I will
send you over the weekend if that is OK.
Re Broadcom: the stock is up $1.20 at $211.50. After the initial shock reaction of yesterday, there has been a lot of
focus on the cost synergies etc. but very little conviction in revenue opportunities. However until we hear from
management as to the overall intentions of the deal, uncertainty will linger.
HOUSE OVERSIGHT 031819
This morning the pricing is as follows:
Aug 200 Puts cost $4.10
Sept 200 Puts cost $7.90
Earning are on 08/30. So worst case is the uncertainty lingers until then which would argue to buy the Sept puts.
However I still prefer buying the Aug puts as I would fully expect more clarity from management before August expiry.
Paul
Paul Barrett
Alpha Group Capital LLC
142 W 57th Street, 11th Floor, New York, NY 10019
a
ALPHA GROUP
CAPITAL
From: jeffrey E. <jeevacation@gmail.com>
Sent: Friday, July 13, 2018 7:11 AM
To: Paul Barrett
Subject:
Richard Kahn
Im not angry, sorry, it is sad. it is apparent that you have no experience trading. we both made a mistake. . the
spy trades were the results of a rank amatuer.. you took a postion on the direction of the market. ok. you
decided to play it extra short time and short. . why? becaue the options are cheaper. ? knowing full well that
time premium was running. . first silly move. . I allowed as promised to give you authority. . you set a target. . it
hit the traget, you moved in back. based on media reporting on trump visit? you didnt act. the market dipped and
you panicked. . AMATEUR. wrong options wrong timing, no discipline and as a percentaage of investment, a one
day dip fof 25%. wanting to buy the highter strike, is ok. but why the same month? why the same moment. why
the same index. . sorry. I have taught this for many years. and your grade is an F. not one good move in
many. . re broadcom. the crack happend in the morning, options were higher. no alternative presented. no
analysis. , this is no way to manage money. I have lost a great deal of money hoping you would be able to do as
you promised you could . would.. Had you told me, jeffrey I d like to try a new job as a manager lets start slow I
can learn . i would be less annoyed. you told me you had great confidence knew the risks and truly believed you
would be able to raise money .do well and prosper. . If it were not you, this would have ended months ago.. we
should work on a solution . not sure yet what shape it takes.
please note
HOUSE OVERSIGHT 031820
The information contained in this communication is
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the use of the addressee. It is the property of
JEE
Unauthorized use, disclosure or copying of this
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and may be unlawful. If you have received this
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return e-mail or by e-mail to jeevacation@gmail.com, and
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please note
The information contained in this communication is
confidential, may be attorney-client privileged, may
constitute inside information, and is intended only for
the use of the addressee. It is the property of
JEE
Unauthorized use, disclosure or copying of this
communication or any part thereof is strictly prohibited
and may be unlawful. If you have received this
communication in error, please notify us immediately by
return e-mail or by e-mail to jeevacation@gmail.com, and
destroy this communication and all copies thereof,
including all attachments. copyright -all rights reserved
please note
The information contained in this communication is
confidential, may be attorney-client privileged, may
constitute inside information, and is intended only for
the use of the addressee. It is the property of
JEE
Unauthorized use, disclosure or copying of this
communication or any part thereof is strictly prohibited
and may be unlawful. If you have received this
communication in error, please notify us immediately by
return e-mail or by e-mail to jeevacation@gmail.com, and
destroy this communication and all copies thereof,
including all attachments. copyright -all rights reserved
HOUSE OVERSIGHT 031821