Nancy Pelosi’s Stock Option Strategy Explained (And Why It’s So Effective)

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2:59Visit your nearby lows on Tonnell Avenue in North Bergen. Speaking of major keys, Nancy Pelosi. So we went to NVIDIA. The next place we're going is Capitol Hill. And the greatest investors you can argue are not on Wall Street. They're in Washington. When you see some of these politicians' portfolios and what they've been able to accumulate since they've been in office is historic. And she's probably the top dog. She's up there. When it comes to her portfolio, it's become legendary for sure. People track her portfolio whenever they, because they got announced different moves that they make. So she reports 69 million of new stock trades.

3:47so um yeah they released the information 69 million in stock and options activity between late december 25 and mid-january 26 on one month yeah in one month she did uh 26 million dollars in stock trades yeah legendary legendary yeah yeah so you want to talk about that yeah i mean So I got the options trades here. And for some of you, this is going to be a whole learning lesson. But we covered this at the Mastermind last year. Her trading strategy is very unique. And it's something that if you have capital, it makes a lot of sense. What she does is, and I'll tell you the companies that she invests in.

4:34So she bought 20 Google calls at a 150 strike for January 2027. She bought 20 Amazon calls for 150 strike for January 2027. and she bought 20 NVIDIA calls for$100 strike for January 2027. Right. So she's going out. These are leaps, right? This is out till next January. And if you're listening to those prices, you're saying to yourself, hmm, Google is past$150. It's way past$150, right? It was at$331 last week. Amazon is past$150, right? It was trading at$240, right? Like NVIDIA is at$185. She's buying$100 strike. Well, here's why, right? in options trading there's something that you call out of the money which means that you go over the price that it's currently at uh and then you have in the money which is kind of like floating around where the the equity's trading and then you have deep in the money and what she's done is she's done deep in the money calls why a couple of reasons okay the equity has far surpassed the strike, which means that the intrinsic value, right?

5:42It's not speculative. There's already value built into it, right? Nvidia has already passed a hundred. Okay. That's the first thing. The next thing is that the decay that happens, right? So in contracts, when we talk about expiration dates, there's always decay, right? The, the, the, the theta of like the Greeks, when you study options trading, there's less sensitivity to it because again, it has already passed a strike. So let's say NVIDIA is trading at 185 now. If it pulls down to 179, if you're near the money, that time decay, right? You're going to see a volatile move. When you're deep in the money, it's a move, but it's not as volatile.

6:18Here's the other reason she does it. Okay, this is the real reason. Let's say NVIDIA moves from 185, right, to 187. That's a$2 move, right? $2 move if you have the stock, right? So that's great. You got some shares. Each share grows by$2. And the options call, if NVIDIA runs from 185 to 187, you're talking about maybe a 3x on that percentage, right? But she's deep in the money. So that percentage is a little bit greater. So she actually has protection on the way up and safety a little bit on the way down. So less decay, more upside, intrinsic value is already built in. she's been doing this year over year leap after leap she buys deep in the money calls and the reason is because she's already built the value the wind is kind of built in and she's protecting herself on the way down it's a great strategy it's more expensive to buy deep in the money calls but at this point she's just rinsing and repeating and i think for us we look at it and say hey yes it's expensive but more importantly what are the companies google yeah the quality The companies that she's choosing make a lot of sense.

7:31And so it gives us, again, if we're thinking about confirmation, like those signs, those catalyst events, all right, what are the people in Washington investing in? Let's see, right? Let's go to Global Trends and see what they're trading in. If we start seeing those companies over and over, oh, they know something. We got to just follow the money. And for those who are not invested in the option, can I get prices away on the equity side? Yep. Let's do it. Google entry will be 285.46 is where you will want to enter Amazon 223.17 and NVIDIA 173.65 so 285.46 for Google 223.17 for Amazon and 173.65 for NVIDIA and she also stole some stocks though She sold 45 ,000 shares of Apple She sold 20 ,000 shares of Nvidia and Amazon She sold 10 ,000 shares of Disney and 5 ,000 shares of PayPal I'm not mad at some profit taking You never lose by taking profit I'm not mad at her taking some profit off the table She also purchased 25 ,000 shares of Alliance Bernstein Say the companies that she sold she sold Apple, NVIDIA, Amazon, Disney, PayPal.

9:00Okay. So Disney, well, Apple, that time frame in which she sold hit its all-time high. NVIDIA hit its all-time high, and Amazon hit an all-time high. PayPal, Disney, not so much, but those for sure. That's a great profit-taker on those. Yeah. Yeah. Okay. Nancy Pelosi. And that's just her. Her husband has his own portfolio. Yeah, her husband. He the one. What? Different game they playing. Discover a spectacular island destination with crystal blue seas, endless sunshine, and the cool Bahamian breeze. Bahamar, located in Nassau, Bahamas, offers your choice of three luxury hotels, over 45 fine dining and nightlife venues, John Batiste's all-new jazz club, the Caribbean's most luxurious casino, and one-of-a-kind experiences for the entire family.

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