Options

1.  Buying a Call:  Value goes UP as asset price increases above the strike price.
2.  Selling a Call:  Value goes DOWN as asset price increases above strike price.

3.  Buying a Put:  Value goes UP as asset price decreases below strike price.
4.  Selling a Put:  Value goes DOWN as asset price decreases below strike price.

options buyers PAY premiums to sellers.
options sellers RECEIVE premiums from buyers.

value of call option today = stock price today less the present value of exercise price considering risk-free rate.

factors in options pricing:                     Calls.             Puts.

current value of underlying asset            +               -
strike price                                               -               +
time to expiration                                    +               +
risk free rate                                            +                -
variance of return on underlying asset.   +               +



Delta: change in option price vs change in stock price, as a percent.  delta of .70 means if stock goes up $1, option should go up $0.7.  As option has more intrinsic value, the delta moves closer to 1.

Gamma: change of Delta vs. change in stock price.

Theta: Time Decay.  rate of change in option price vs. time.  theta of 0.35 means option premium decreases by $0.35 each day.

Alpha: Gamma/Theta Ratio

Vega: change in option price vs. 1% change in volatility.

Rho: change in option price vs. 1% change in interest rate.

High Net Worth Individuals analysis 2013-2014

It is interesting to see how concentrated the wealth is.  34.6% of the wealth in 0.9% of the HNWI population.  It is also interesting to see that the wealth growth for those with less than $30MM was more than that for those with more, which is opposite to what one would assume.

Asset allocation of high net worth population.  Year over year, real estate, equity and cash holdings have decreased, while fixed income and alternatives have increased.  It seems that North American and Japanese HNWI disfavour Real Estate.  North Americans favour Equities considerably more than other regions, while Japan favours Cash in an extreme way.

Alternative Investments of choice for high net worth population.  Hedge Fund investment has increased considerably.

Regional and Age demographics of people worth more than $1 Million USD.

If right now, most of the pie is split between 3 titans, then if Latin America and the Middle East develop their economies, they will have to split it 5 ways and enjoy a much smaller slice.  It is very surprising that the Under 40 group is as large as it is.  I wonder if it is growing or shrinking.