Reward 500 Tiger-coinsSome argue that options trading is inherently risky, especially for beginners who lack a clear understanding of how it works. For them, venturing into options without proper knowledge is akin to gambling.
However, for Nancy Pelosi, options may well represent long-term investments.
Take her most recent disclosures on January 17, for example.
She executed in-the-money call options on several tech stocks.
She purchased:
- 50 $Alphabet(GOOG)$ $150 1/16/26 calls
- Exercised her 500 $NVIDIA(NVDA)$ calls (purchased 50,000 shares)
- Exercised her 140 $Palo Alto Networks(PANW)$ calls (purchased 14,000 shares)
- 50 $Tempus AI(TEM)$ $20 1/16/26 calls (NEW HOLDING)
- 50 $Vistra Energy Corp.(VST)$ $50 1/16/26 calls (NEW HOLDING)
She sold:
- 31,600 $Apple(AAPL)$ shares (she has 49,200 left) - 10,000 $NVIDIA(NVDA)$ shares (she has 60,000 left)
These call options had strike prices significantly below the market price at the time, with expiration dates set for January 16, 2026. This demonstrates Pelosi's confidence in the long-term growth potential of these companies. By using leverage without the risk of margin calls, she effectively increases capital efficiency and boosts returns—aligning with long-term investment principles.
However, a well-known YouTuber and Tesla enthusiast, Jason DeBolt, holds a different view.
Jason, who went all-in on $Tesla Motors(TSLA)$ back in 2013, became famous for selling his house to invest in Tesla stock. When others criticized him, accusing him of gambling, he argued that he committed the funds with a minimum seven-year horizon, which he considers long-term investing—not gambling.
Interestingly, this bold Tesla bull believes that options trading is gambling.
So why do opinions on options trading vary so widely?
Is options trading inherently gambling, or can it be an investment depending on how it's approached?
What’s your take?
Leave your comments and also post to win tiger coins~
Comments
Similar to driving, it’s very risky without theory classes and practical test to pass the driving licence. Then we need to familiarise with the car, gain driving experiences ,take note of weather, road & traffic conditions, pick up defensive driving techniques and beware of other motorists & pedestrians before we can truly enjoy the journey. @koolgal @SPACE ROCKET @Christinechel @joellow @RHO @W3Alan @AyKing
Some argue that options trading is inherently risky, especially for beginners who lack a clear understanding of how it works. For them, venturing into options without proper knowledge is akin to gambling.
However, for Nancy Pelosi, options may well represent long-term investments.
@HelenJanet @Shyon @Aqa @LMSunshine @koolgal @rL @GoodLife99 @Universe宇宙 @SPACE ROCKET @TigerGPT
So why do opinions on options trading vary so widely?
Is options trading inherently gambling, or can it be an investment depending on how it's approached?
What’s your take?
Leave your comments and also post to win tiger coins~
🌟🌟🌟Options Trading can be a very effective tool to accumulate wealth....with one disclaimer, that is if you know how.
Nancy Pelosi has shown considerable skill and confidence in her trades especially with options on a long maturity date. She has made far more money with her trades than her pay when she was in Congress.
Therefore it is crucial to have the knowledge and skill in order to be a successful options trader.
The good thing is with Tiger Brokers, I can practise and hone in my skills first through learning from many expert traders in the Tiger Community like @ZEROHERO @Optionspuppy @TigerOptions plus teachers like@Tiger_Academy . I would try first with paper trading before trading real time.
2025 is the year for me to learn new skills and Options Trading is certainly on my to-do list.
Here's wishing all my Dear Tiger Friends and the hardworking staff at Tiger Brokers @Tiger_comments @Daily_Discussion @TigerStars @CaptainTiger @TigerClub @Tiger_SG @TigerTradingNotes A Happy, Healthy and Prosperous Lunar New Year.
For me, options trading isn’t inherently gambling. If approached with proper knowledge, risk management, and a long-term perspective, it can be a powerful way to enhance returns. Deep in-the-money calls, for example, can provide leverage without the risks of margin trading. However, for those who trade options without understanding them, it can easily become speculation rather than investment.
At the end of the day, the key difference lies in how they are used—just like stocks, real estate, or any other asset class.
Thoughtful strategy = investing.
Blind bets = gambling.
@Tiger_comments @TigerStars @TigerGPT