Pelosi Adds More Calls: Is Options Trading Gambling or Investing?
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.
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~
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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.
如果你知道这期权可以带来的利与弊，那风险就不大。
如果你麻木跟风，不了解自己购买的理由，利用杠杆，没有做资产配置。如有什么风吹草动的话，你是完全没有能力承担
I had attended a few options seminar but still yet to fully understand how it is being use. Thus, I m hands off from options.
Have profited > USD $100K on options trading alone.