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Nancy Pelosi buys millions of options in tech stocks
- antiviral 5y agoAlphabet, Micron, Roblox, Salesforce, seem to be particular favorites, in addition to Disney
- rektide 5y agoUhhh.... tech stocks are what keeps the stock market rising. They are the wins. It doesn't take a great act of prophecy to see that.
- giardini 5y agoShe didn't buy "millions of options in tech stocks"~ she bought "millions of dollars of options in tech stocks"! Jeez!
- antiviral 5y agoYes- you are correct, I meant to write "millions of dollars in options" but I can no longer edit the title. Also, since we're trying to be fully accurate, she didn't buy those options, her husband did. As someone who aspires to be as successful an options trader as Mr. Pelosi, I stand corrected.
- syspec 5y agoWhat's the strategy behjnd buying such deep in the money calls? For example GOOG at a $2000 strike price, when it is currently trading at $2920
- boto3 5y agoLeverage. Call options at 2000 strike expiring on 9/16/22 cost roughly 1000 now. For each dollar GOOG goes up (or down), the deep in money options' price will probably move roughly one dollar in the same direction, as long as GOOG price doesn't go down too much. So instead of investing on 100 Google shares for 300K dollars, she can buy 3 call options (each call option is for 100 shares) for the same money and makes three times as much if GOOG goes up, and loses three times as much (or more) if it goes down: e.g., GOOG is under 2000 in 9/16, she will lose all 200K dollars. Essentially, she's bullish on GOOG. She's also rich enough to take the risk to leverage 3 times. She's even more bullish on RBLX though.