<table><tr><th>From:</th><th>Ens, Amanda</th></tr><tr><td>Sent:</td><td>Thursday, April 20, 2017 1:59 PM</td></tr><tr><td>To:</td><td>jeffrey E.;</td></tr><tr><td>Subject:</td><td>Buy FB and AAPL puts before earnings (or replace stock with options)</td></tr></table>

The implied 1-day move=for FB earnings on May 3rd is 4.3%.

You can buy the FB May=5th expiry 143 call for $3.30 (ref $143.06) - only 2.3%

The implied 1-day move=for AAPL earnings on May 2nd is 3.2%.

You can buy the AAPL M=y 5th expiry 140 put for $2.00 (ref $141.65)— 1.4%. The =TM costs 2.0%.

Or replace stock with =alls. The AAPL May 5th expiry 150 calls cost $0.42. The AAPL Ma= 19th expiry 150 calls cost $0.59.

From: Ens, Amanda

Sent: Thursday, April 13, 2017 9:24 AM
To: 'jeffrey E' <jeevacation@gmail.com>
Subject: Buy FB puts before earnings

We generally view single stock implied vol as underp=icing earnings this season. FB in particular screens cheap.

Our research's 1= internet preview includes sentiment rankings, with FB ranked #1out=of 25 internet stocks with highest positive sentiment, driven by its lowes= short interest as % of float, 2nd highest yoy revenue growth expectations, and 21% YTD stock performance.&nb=p;

FB reports May 3rd, and we view 5May2=17 puts as priced attractively low, given FB's extremely high positi=e sentiment/long positioning and high rev expectations going into Q1it's. The 5May2017 ATM put costs 2.8% =s an avg 6% realized daily move over the past 6 earnings. Additional=y, 5May2017 expiration captures the April 18th-19th F8 developer conferenc=, an event that has historically been a catalyst for the stock.</=pan>

=span style="color:#000A23">Buy FB 5May2017 ATM put for 2.8% premium=/0:p>

=span style="color:#000A23">FB vol screens as cheap across the curve; hap=y to price longer dates as well.

Report link

=span style="font-size:20.5pt;color:#000A23">Sentiment Ranking Update

We are updating our sen=iment ranking index on 25 stocks in our Internet coverage universe (as of =/4/17). We have aggregated six different indicators we think are relevant =o gauge sentiment and have generated an overall "sentiment" score for each company. This sentiment an=lysis is intended to be informative and should not be used to form an inve=tment opinion; for example our model does not factor in valuation or manag=ment quality. Of our company coverage universe, we have excluded four game publisher companies as well as two recent IPO's=from this analysis as data may not be comparable.

=

<=p>
Table 6: 1Q16 change in sentim=nt ranking

Ticker
Rank
Pre 4Q $\Delta$
Score
Pre4Q $\Delta$

FB
1
+3
4
+2

TREE</=pan></=pan>
3
-1

<table><tr><th>8

+4

NFLX

5

-2

9

+1

PCLN

7
༡༢
+1

9

༠༡༧
+2

CRCM

8

+9

11

+3

EXPE

9

+5

12
27

+2

IAC

10</th></tr></table>

7
+1
9
+2

<table><tr><th>+5

427 12

+2

RATE

= 11

-4

13

-2

EBAY

12

+4

སྐ

+1

ONDK

13

+5

14

+1

ZG

14

25 -9

14

-5</th></tr></table>

4

<table><tr><th>YHOO

ཡ

ཆ

ཋ 14

+3

GPRO

16

+8

14

+5

YELP

17

-7

16

-4

W

18

-5

16

-3

P
60
19

NA</th></tr></table>

NA
GRUB
20
-9
16
-4
MTCH
21
+1

21
+1
17
+1

QUOT

QU
22
-10
17
-4

FIT
23
+2
19
+1

19
+1
TRIP
24

-1

20

-2

TWTR

25

-5

21

-5

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## =Investor sentiment categories

We assembled data tha= measures investor sentiment across six categories. These metrics include =atest short interest (as a % of float), change in short interest as a % of float over the last 90 days, current stock per=ormance over the last 90 days, current average sell side ratings, forward =ear EPS estimate revisions over last 90 days, and expected FY17 revenue gr=wth. While there are no perfect indicators of average investor sentiment, we believe these metrics provide=a helpful framework of investor sentiment in our sector. In our analysis, =acebook, WIX, and LendingTree had the highest sentiment in 1Q, while Fitbi=, Trip and Twitter had the lowest sentiment. Care.com had the most improved ranking, moving up 9 points to 8=sup>th, while Quotient had the biggest decline moving down 10 spots =n our ranking to 22nd.

Methodology

Our methodology consi=ted of: 1) gathering financial data across six categories that we believe =re relevant to measuring investor sentiment, 2) ranking companies on each attribute using a scale of 1 to 29, with 1 highe=t and 29 the lowest, and 3) ranking the companies based on the avg. score =f the six metrics.

Highest sentiment: FB, W=X, and TREE; Lowest: FIT, TRIP, and TWTR

Based on our sentimen= ranking index, Facebook, Wix, and LendingTree have top investor sentiment=pre 1Q earnings. Facebook moved into first place from fourth due to the lowest short interest as % of float, second highest=FY17 revenue growth, sixth highest sell side FY16 EPS estimate revisions, =nd third best stock performance in the last 90 days. Wix came in second pl=ce with top stock performance in the last 90 days, top expected FY17 revenue growth and second best sell-si=e FY16 EPS estimate revision, despite ranking ninth for current sell side =anking and seventh for short interest ratio. LendingTree placed third with=best current sell side ranking and best change in short interest ratio.

Fitbit had third wors= investor sentiment with the worst stock performance in the last 90 days, =he worst expected FY17 revenue growth and the second largest change in short interest in the period. TripAdvisor, had the secon= lowest sentiment with the third worst sell side ranking and fifth worst s=ll side EPS estimate revision. Twitter, our lowest sentiment stock pre 1Q =arnings, had second to worst sell side ranking and expected FY17 revenue growth, along with third to worst s=ll side estimate revisions and was below average in all of our categories.=/span>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## =Investor sentiment categories (cont.)

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating

Our sentiment analysi= is independent of our investment rating system, and our investment rating=may or may not factor in positive or negative sentiment. This scorecard analysis includes only data currently up to the last 90 day=, and our investment rating opinion takes into consideration potential sto=k price fluctuations, attractiveness for investment relative to other stoc=s within our Coverage Cluster, business model quality, and valuation. Please see our Fundamental Equity R=ting Opinion Key at the end of the report for more details.

<=p>
Table 7: Combined Metric List

&n=sp;Company

Short Interest % float

a short interest % of float

Performance 90 days

Sell Side Ranking

EPS Estimate Revisions

Expected FY17 Rev. Growth
FB
1%
0%
21%
4.7 =/span>
4%
37%
WIX
2%
-1%
67%
4.4 =/span>
62%
43%

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>TREE</th></tr><tr><td>23%</td></tr><tr><td>-20%</td></tr><tr><td>21%</td></tr><tr><td>5.0=/span&gt;</td></tr><tr><td>-6%</td></tr><tr><td>34%</td></tr><tr><td>AMZN</td></tr><tr><td>1%</td></tr><tr><td>0%</td></tr><tr><td>20%</td></tr><tr><td>4.8=/span&gt;</td></tr><tr><td>-10%</td></tr><tr><td>21%</td></tr><tr><td>NFLX</td></tr><tr><td>6%</td></tr><tr><td>-1%</td></tr><tr><td>14%</td></tr><tr><td>4.1 =/span&gt;</td></tr><tr><td>15%</td></tr><tr><td>27%</td></tr><tr><td>GOOGL</td></tr><tr><td>1%</td></tr><tr><td>0%</td></tr><tr><td>6%</td></tr><tr><td>4.7 =/span&gt;</td></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>0%</th></tr><tr><td>19%</td></tr><tr><td>PCLN</td></tr><tr><td>3%</td></tr><tr><td>0%</td></tr><tr><td>20%</td></tr><tr><td>4.6 =/span&gt;</td></tr><tr><td>0%</td></tr><tr><td>16%</td></tr><tr><td>CRCM</td></tr><tr><td>3%</td></tr><tr><td>0%</td></tr><tr><td>42%</td></tr><tr><td>3.5 =/span&gt;</td></tr><tr><td>28%</td></tr><tr><td>6%</td></tr><tr><td>EXPE</td></tr><tr><td>8%</td></tr><tr><td>-2%</td></tr><tr><td>11%</td></tr><tr><td>4.6=/span&gt;</td></tr><tr><td>-12%</td></tr><tr><td>14%</td></tr><tr><td>IAC</td></tr><tr><td>1%</td></tr><tr><td>0%</td></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>12%</th></tr><tr><td>4.4 =/span&gt;</td></tr><tr><td>-5%</td></tr><tr><td>-1%</td></tr><tr><td>RATE</td></tr><tr><td>2%</td></tr><tr><td>0%</td></tr><tr><td>-13%</td></tr><tr><td>4.2 =/span&gt;</td></tr><tr><td>2%</td></tr><tr><td>16%</td></tr><tr><td>EBAY</td></tr><tr><td>2%</td></tr><tr><td>0%</td></tr><tr><td>14%</td></tr><tr><td>3.6=/span&gt;</td></tr><tr><td>-3%</td></tr><tr><td>5%</td></tr><tr><td>ONDK</td></tr><tr><td>12%</td></tr><tr><td>3%</td></tr><tr><td>1%</td></tr><tr><td>3.3 =/span&gt;</td></tr><tr><td>34%</td></tr><tr><td>30%</td></tr><tr><td>ZG</td></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>11%</th></tr><tr><td>-2%</td></tr><tr><td>-9%</td></tr><tr><td>3.9=/span&gt;</td></tr><tr><td>-26%</td></tr><tr><td>24%</td></tr><tr><td>YHOO</td></tr><tr><td>6%</td></tr><tr><td>1%</td></tr><tr><td>19%</td></tr><tr><td>3.8=/span&gt;</td></tr><tr><td>0%</td></tr><tr><td>2%</td></tr><tr><td>GPRO</td></tr><tr><td>36%</td></tr><tr><td>-3%</td></tr><tr><td>-4%</td></tr><tr><td>2.3 =/span&gt;</td></tr><tr><td>74%</td></tr><tr><td>7%</td></tr><tr><td>YELP</td></tr><tr><td>10%</td></tr><tr><td>0%</td></tr><tr><td>-14%</td></tr><tr><td>3.7 =/span&gt;</td></tr><tr><td>-2%</td></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>25%</th></tr><tr><td>W</td></tr><tr><td>38%</td></tr><tr><td>2%</td></tr><tr><td>17%</td></tr><tr><td>3.9=/span&gt;</td></tr><tr><td>-22%</td></tr><tr><td>25%</td></tr><tr><td>P</td></tr><tr><td>30%</td></tr><tr><td>2%</td></tr><tr><td>-7%</td></tr><tr><td>3.9=/span&gt;</td></tr><tr><td>2%</td></tr><tr><td>17%</td></tr><tr><td>GRUB</td></tr><tr><td>18%</td></tr><tr><td>7%</td></tr><tr><td>-11%</td></tr><tr><td>4.1 =/span&gt;</td></tr><tr><td>-5%</td></tr><tr><td>31%</td></tr><tr><td>MTCH</td></tr><tr><td>27%</td></tr><tr><td>5%</td></tr><tr><td>-4%</td></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>4.2 =/span&gt;</th></tr><tr><td>1%</td></tr><tr><td>8%</td></tr><tr><td>QUOT</td></tr><tr><td>8%</td></tr><tr><td>0%</td></tr><tr><td>-13%</td></tr><tr><td>4.8 =/span&gt;</td></tr><tr><td>-56%</td></tr><tr><td>5%</td></tr><tr><td>***** FIT</td></tr><tr><td>26%</td></tr><tr><td>-4%</td></tr><tr><td>-29%</td></tr><tr><td>3.1 =/span&gt;</td></tr><tr><td>NA</td></tr><tr><td>-27%</td></tr><tr><td>TRIP</td></tr><tr><td>16%</td></tr><tr><td>5%</td></tr><tr><td>-12%</td></tr><tr><td>2.9 =/span&gt;</td></tr><tr><td>-21%</td></tr><tr><td>11%</td></tr><tr><td>TWTR</td></tr><tr><td>11%</td></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

3%
-11%
2.5 =/span>
-55%
-7%
Source: BofA Merrill Lynch Global Research, Blo=mberg, as of 4/4/2017

<=p>

<=p>

<=p>
Table 8: Combined metric ranki=gs

&n=sp;Company

Short Interest % float

A short interest % of float

Performance 90 days

Sell Side Ranking

EPS Estimate Revisions

Expected FY17 Rev. Growth

Average

FB

1

8

3

4

6

2

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

4 =/span>

WIX

7

6

1

9

2

1

4 =/span>

TREE

20

1

4

1

17

3

8 =/span>

AMZN

4

9

5

2

18

10

8 =/span>

NFLX

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>10

7

10
2256

13

9=/span&gt;

GOOGL

2

12
23

13

5

12

11

9=/span&gt;

PCLN

8

11

6

7

10

14

9=/span&gt;

CRCM

9

14</th></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>2</th></tr><tr><td>20</td></tr><tr><td>4</td></tr><tr><td>19 199</td></tr><tr><td>11 =/span&gt;</td></tr><tr><td>EXPE</td></tr><tr><td>12</td></tr><tr><td>5</td></tr><tr><td>12 12</td></tr><tr><td>6</td></tr><tr><td>19</td></tr><tr><td>15</td></tr><tr><td>12 =/span&gt;</td></tr><tr><td>IAC</td></tr><tr><td>3</td></tr><tr><td>10</td></tr><tr><td>11

8

16</td></tr><tr><td>23</td></tr><tr><td>12 =/span&gt;</td></tr><tr><td>RATE

6

15</td></tr><tr><td>23</td></tr><tr><td>10</td></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>8

13</th></tr><tr><td>13 =/span&gt;</td></tr><tr><td>EBAY</td></tr><tr><td>5

13

9

19

14

20</td></tr><tr><td>13 =/span&gt;</td></tr><tr><td>ONDK</td></tr><tr><td>17 17

ཀླུ 21

་ 14

ཊུ 21

3
nn
5

14 =/span&gt;

ZG

15

4

18

14

22

9</td></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

14 =/span>

YHOO

11

18

7

17

11

22

14 =/span>

GPRO

24

3

15

25

1

18

14 =/span>

YELP

14

16

24

18

13

8

16 =/span>

W

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>25
22

19

∞ 8

15

227 21

16 =/span&gt;

P

23

20

17

16

7

2 12</th></tr><tr><td>16=/span&gt;</td></tr><tr><td>GRUB</td></tr><tr><td>19

25

20 22221

15

4</td></tr><tr><td>16=/span&gt;</td></tr><tr><td>MTCH</td></tr><tr><td>22

24 4</td></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

<table><tr><th>16

11

9

177 17

17 =/span&gt;</th></tr><tr><td>QUOT</td></tr><tr><td>33 13

17

22

m 3

24

21

17 =/span&gt;

FIT

21

2

25

2 22

N/A

25

19 =/span&gt;

TRIP

18

23

21

23</td></tr></table>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

20

16

20 =/span>

TWTR

16

22
19
24
23
24

21 =/span>

Source: BofA Merrill Lynch Global Research, Blo=mberg, as of 4/4/2017

Amanda Ens

Director

Bank of America Merrill Lynch

Merrill Lynch, Pierce, Fenner & Smith Incorporat=d

One Bryant Park, 5th Floor, New York, NY 10036 =/o:p>

# Source: BofA =errill Lynch Global Research, Bloomberg, as of 4/4/2017 (cont.)

## Score Ranking vs. Invest=ent Rating (cont.)

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