File 031806
Email Chain About Broadcom Stock Options and Investment Performance (File 031806)
Email correspondence between Paul Barrett of Alpha Group Capital LLC and Jeffrey E. regarding Broadcom (AVGO) stock options trading strategy and criticism of investment management performance during July 2018.
Summary
Paul Barrett, an investment advisor at Alpha Group Capital LLC, exchanges emails with Jeffrey E. and Richard Kahn regarding options trading strategies for Broadcom stock in July 2018. The discussion involves recommendations for August and September put options at various strike prices. Jeffrey E. expresses significant frustration with investment performance, particularly criticizing trading decisions on SPY options and Broadcom, describing management as amateur with poor timing and discipline. He indicates substantial losses and requests development of a solution, though acknowledges the ongoing relationship.
From: Paul BarrettSent: 7/13/2018 6:13:06 PMTo: jeffrey E. [jeeyacation@gmail.com]CC: Richard KahnSubject: RE: AVGOAttachments: image003.jpg; image001.jpgImportance: HighMy initial recommendation this morning was to buy the $200 Aug puts. I still think that is the best idea. The stock is nowdown 16% on a deal that no one fully understands. The CEO has a good track record regarding mergers. So I think itmakes sense to keep the stock and own protection for the next 35 days until we hopefully get more clarity frommanagement.Paul BarrettAlpha Group Capital LLC142 W 57th Street, 11th Floor, New York, NY 10019ALPHA GROUPCAPITALFrom: jeffrey E. <jeeyacation@gmail.com>Sent: Friday, July 13, 2018 1:55 PMTo: Paul BarrettCc: Richard KahnSubject: Re: AVGOlye had enough!!!! Which puts ???On Fri, Jul 13, 2018 at 1:40 PM Paul BarrettAny thoughts on the AVGO Aug puts? Stock trading at 204.50.Aug puts now $6.50Paul BarrettAlpha Group Capital LLC142 W 57th Street, 11th Floor, New York, NY 10019ALPHA GROUPCAPITALFrom: Paul BarrettSent: Friday, July 13, 2018 9:42 AMwrote:HOUSE OVERSIGHT 031806To: jeffrey E. <jeevacation@gmail.com>; Richard KahnSubject: RE:JeffreyI understand your frustrations and appreciate your willingness to figure out a solution. I have some ideas which I willsend 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 offocus on the cost synergies etc. but very little conviction in revenue opportunities. However until we hear frommanagement as to the overall intentions of the deal, uncertainty will linger.This morning the pricing is as follows:Aug 200 Puts cost $4.10Sept 200 Puts cost $7.90Earning 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.PaulPaul BarrettAlpha Group Capital LLC142 W 57th Street, 11th Floor, New York, NY 10019aALPHA GROUPCAPITALFrom: jeffrey E. <jeevacation@gmail.com>Sent: Friday, July 13, 2018 7:11 AMTo: Paul Barrett .; Richard KahnSubject: _Im not angry, sorry, it is sad. it is apparent that you have no experience trading. we both made a mistake. . thespy trades were the results of a rank amatuer.. you took a postion on the direction of the market. ok. youdecided to play it extra short time and short. . why? becaue the options are cheaper. ? knowing full well that timepremium was running. . first silly move. . I allowed as promised to give you authority. . you set a target. . it hit thetraget, you moved in back. based on media reporting on trump visit? you didnt act. the market dipped and youpanicked. . AMATEUR. wrong options wrong timing, no discipline and as a percentaage of investment, a one dayHOUSE OVERSIGHT 031807dip fof 25%. wanting to buy the highter strike, is ok. but why the same month? why the same moment. why thesame index. . sorry. I have taught this for many years. and your grade is an F. not one good move inmany. . re broadcom. the crack happend in the morning, options were higher. no alternative presented. noanalysis. , this is no way to manage money. I have lost a great deal of money hoping you would be able to do as youpromised you could . would.. Had you told me, jeffrey I d like to try a new job as a manager lets start slow I canlearn. i would be less annoyed. you told me you had great confidence knew the risks and truly believed you wouldbe able to raise money .do well and prosper. . If it were not you, this would have ended months ago.. we shouldwork on a solution . not sure yet what shape it takes.please noteThe information contained in this communication isconfidential, may be attorney-client privileged, mayconstitute inside information, and is intended only forthe use of the addressee. It is the property ofJEEUnauthorized use, disclosure or copying of thiscommunication or any part thereof is strictly prohibitedand may be unlawful. If you have received thiscommunication in error, please notify us immediately byreturn e-mail or by e-mail to jeevacation@gmail.com, anddestroy this communication and all copies thereof,including all attachments. copyright -all rights reservedplease noteThe information contained in this communication isconfidential, may be attorney-client privileged, mayconstitute inside information, and is intended only forthe use of the addressee. It is the property ofJEEUnauthorized use, disclosure or copying of thiscommunication or any part thereof is strictly prohibitedand may be unlawful. If you have received thiscommunication in error, please notify us immediately byreturn e-mail or by e-mail to jeevacation@gmail.com, anddestroy this communication and all copies thereof,including all attachments. copyright -all rights reservedHOUSE OVERSIGHT 031808