To: jeffrey epstein (jeevacation@gmail.com)[jeffrey epstein (jeevacation@gmail.com)];
jeevacation@gmail.com[jeevacation@gmail.com]

From: Jeffrey M Matusow

Sent: Mon 9/27/2010 6:03:58 PM

Subject: S+P 500

Jeffrey,

You are long the S+P via a structured note maturing in Jan-12. The index is up 5% since we bought the note. The market has rallied —10% in Sept.

I think we should sell covered calls against the position. The Nov-11 1170 calls bring in 2% of premium (13.5% annualized). If we get called away it is 4% of additional return (26.9% annualized). If we end up above the strike we can roll the options forward and take in more premium.

Jeff

Jeffrey M. Matusow
JPMorgan Private Bank | 40 West 57th Street, 33rd Floor, New York, NY 10019
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