Once upon a time, there was a retired trader, that lived in a stunning cliffside castle, along with his two old Etonian sons. Stories run, as to how beautiful the palace was, with his monumental, gothic façade, antique stone, spiral stairs, baccarat chandeliers, Persian rugs, and Romanesque tapestry. But among all the riches that adorned the wealthy man’s home, the old chap’s mania was for a little Kandinsky that he looked after as if it was his newborn child.
One night, the old fellow reunited his two lads in front of the extravagant painting and asked both of them, “when you look at this painting, what do you see?”
To which the eldest son replied, “Ohh, I see a magnificent painting with this unique strength reflected in the colors, balanced with the lightness of the background. This is, clearly, a masterpiece”.
Then the junior son replied, “Ohh, I see one of the first abstract paintings, a unique expression of the boldness, creativity and free spirit of the author. This is, clearly, a masterpiece”.
At this moment, the two brothers got curious about the perspective of their father, who seemed so madly captivated by the oeuvre d’art, so they asked him back, “And you, what do you see when you look at this painting?” To what their father answered them: “I see USD 30 million notional, in the money long put option, that hedges me from system collapse and confiscation, as I can swiftly move this little painting to a safe jurisdiction in case of turmoil. The option I see, has a some gamma to political volatility and UHNWI inflation, with almost no theta. All of this wrapped in a state of the art structure, that allows me to not pay any tax while invested on this asset. This is, clearly, a chef d’oeuvre.”
