File 031813
Email Chain: Broadcom Stock Options Trading Discussion - Richard Kahn, Paul Barrett, Jeffrey E. (File 031813)
Email chain from July 13, 2018 discussing Broadcom (AVGO) stock trading strategy, put options recommendations, and critique of trading decisions between Richard Kahn of HBRK Associates, Paul Barrett of Alpha Group Capital, and Jeffrey E.
Summary
On July 13, 2018, Richard Kahn, Paul Barrett, and Jeffrey E. exchanged emails discussing trading strategy for Broadcom stock following a significant stock decline. Paul Barrett recommended purchasing August $200 put options as protection against further losses, while Jeffrey E. expressed frustration with the trading decisions made and questioned the expertise of the advisors. The conversation escalated with Jeffrey E. criticizing the timing, selection of options, and overall management of the investment portfolio, suggesting fundamental disagreements about investment strategy and decision-making processes.
From: Richard KahnSent: 7/13/2018 6:46:14 PMTo: jeffrey E. [jeeyacation@gmail.com]Subject: Re: AVG°Importance: Highi do not believe so..i will look into exact trades..Richard KahnHBRK Associates Inc.575 Lexington Avenue 4th FloorNew York, NY 10022tel IfaxcellOn Jul 13, 2018, at 2:41 PM, jeffrey E. <jeevacation@gmail.com> wrote:Did he sell naked puts??On Fri, Jul 13, 2018 at 2:35 PM Richard Kahn > wrote:i believe he is married to broadcom as has he got stuck with stock on both 4,000 lots from selling puts..Richard KahnHBRK Associates Inc.575 Lexington Avenue 4th FloorNew York, NY 10022telfaxcellOn Jul 13, 2018, at 2:18 PM, jeffrey E. <jeevacation@gmail.com> wrote:Again?? How many puts ? What are the alternatives. The fact tgat you iwn thd stock at a higher price isaffecting your decision. Sorry. This is judt ridiculous!!! Would you buy the stock here. ???? If you wouldwould you also buy puts ??? My patience is at its endOn Fri, Jul 13, 2018 at 2:13 PM Paul Barrett wrote:HOUSE OVERSIGHT 031813My initial recommendation this morning was to buy the $200 Aug puts. I still think that is the best idea. Thestock is now down 16% on a deal that no one fully understands. The CEO has a good track record regardingmergers. So I think it makes sense to keep the stock and own protection for the next 35 days until wehopefully get more clarity from management.Paul BarrettAlpha Group Capital LLC142 W 57th Street, 11th Floor, New York, NY 10019<image001.jpg>From: jeffrey E. <jeevacation@gmail.com>Sent: Friday, July 13, 2018 1:55 PMTo: Paul Barrett < >Cc: Richard Kahn ‹>Subject: Re: AVGOlye had enough! !!! Which puts ???On Fri, Jul 13, 2018 at 1:40 PM Paul Barrett <MillaM> wrote:Any 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 10019<image003.jpg>From: Paul BarrettSent: Friday, July 13, 2018 9:42 AMTo: jeffrey E. <jeevacation@gmail.com>; Richard Kahn <Subject: RE:Jeffrey>HOUSE OVERSIGHT 031814I understand your frustrations and appreciate your willingness to figure out a solution. I have some ideaswhich 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 beena lot of focus on the cost synergies etc. but very little conviction in revenue opportunities. However until wehear from management 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 Septputs. However I still prefer buying the Aug puts as I would fully expect more clarity from managementbefore August expiry.PaulPaul BarrettAlpha Group Capital LLC142 W 57th Street, 11th Floor, New York, NY 10019<image003.jpg>From: jeffrey E. <jeevacation@gmail.com>Sent: Friday, July 13, 2018 7:11 AMTo: Paul Barrett <Subject:>; Richard Kahn <>Im not angry, sorry, it is sad. it is apparent that you have no experience trading. we both made amistake. . the spy trades were the results of a rank amatuer. . you took a postion on the direction of themarket. 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 togive you authority. . you set a target. . it hit the traget, you moved in back. based on media reporting ontrump visit? you didnt act. the market dipped and you panicked. . AMATEUR. wrong options wrongtiming , no discipline and as a percentaage of investment, a one day dip fof 25%. wanting to buy thehighter strike , is ok. but why the same month? why the same moment. why the same index. . sorry. Ihave taught this for many years. and your grade is an F. not one good move in many. . rebroadcom. 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 ableto do as you promised you could . would. . Had you told me, jeffrey I d like to try a new job as aHOUSE OVERSIGHT 031815manager lets start slow I can learn. i would be less annoyed. you told me you had great confidence knewthe risks and truly believed you would be able to raise money .do well and prosper. . If it were notyou, this would have ended months ago.. we should work 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 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 reservedplease noteHOUSE OVERSIGHT 031816The 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 031817