Latest / Earn Your Leisure / Nancy Pelosi’s Stock Option Strategy Explained (And Why It’s So Effective)

Transcript

Nancy Pelosi’s Stock Option Strategy Explained (And Why It’s So Effective) · Earn Your Leisure

• 0:00
  Speaker 1: Speaking of major keys, Nancy Pelosi. So we went to
• 0:03
  Speaker 1: a video. The next place. The next place we're going
• 0:05
  Speaker 1: is Capitol Hill, and the greatest investors, you can argue,
• 0:11
  Speaker 1: are not all.
• 0:13
  Speaker 2: Argument in Washington.
• 0:16
  Speaker 1: When you see some of these politicians portfolios and what
• 0:18
  Speaker 1: they've been able to accumulate since they've been in office,
• 0:22
  Speaker 1: it's historic and she's probably the top when it comes
• 0:28
  Speaker 1: to her portfolio. It's become legendary for sure. Like people
• 0:33
  Speaker 1: people track her portfolio whenever they you know, because they
• 0:36
  Speaker 1: got announced different moves that they make. So she reports
• 0:40
  Speaker 1: sixty nine million of new stock trades. So yeah, they
• 0:45
  Speaker 1: released the information sixty nine million in stock and options
• 0:50
  Speaker 1: activity between late December twenty five and mid January twenty
• 0:56
  Speaker 1: six on one month and one month she did twenty
• 1:01
  Speaker 1: six million dollars in stock trades. Yeah, legend in the
• 1:08
  Speaker 1: legendary yea, yeah, yeah, so you want to talk about that?
• 1:12
  Speaker 2: Yeah, I mean, so I got the options trades here
• 1:14
  Speaker 2: and for some of you this is going to be
• 1:16
  Speaker 2: a whole learning lesson, but we've covered this at the
• 1:19
  Speaker 2: Mastermind last year. Her trading strategy is very unique and
• 1:23
  Speaker 2: it's something that if you have capital, it makes a
• 1:26
  Speaker 2: lot of sense. What she does is and I'll tell
• 1:28
  Speaker 2: you the companies that she invested. So she bought twenty
• 1:31
  Speaker 2: Google calls at a one to fifty strike for January
• 1:34
  Speaker 2: twenty twenty seven. She bought twenty Amazon calls for one
• 1:37
  Speaker 2: hundred and fifty strike for January twenty twenty seven, and
• 1:41
  Speaker 2: she bought twenty in Video calls for one hundred dollars
• 1:44
  Speaker 2: strike for January twenty twenty seven. Right, So she's going
• 1:47
  Speaker 2: out these are leaps, right, this is out till next January.
• 1:51
  Speaker 2: And if you listen into those prices, you're saying to yourself.
• 1:55
  Speaker 2: Google is passed one fifty, it's way past one fifty, right,
• 1:57
  Speaker 2: it was at three thirty one last week. Amazon has
• 2:00
  Speaker 2: passed one fifty. Right, it was trading at two forty, right, like,
• 2:03
  Speaker 2: and Video is at one eight five. She's buying one
• 2:06
  Speaker 2: hundred dollars strike. Well, here's why. Right, in options trading,
• 2:11
  Speaker 2: there's something that you call out of the money, which
• 2:14
  Speaker 2: means that you go over the price that is currently
• 2:16
  Speaker 2: at uh and then you have in the money, which
• 2:19
  Speaker 2: is kind of like floating around with the equity is trading,
• 2:23
  Speaker 2: and then you have deep in the money. And what
• 2:26
  Speaker 2: she's done. Is she's done? Deep in the money calls
• 2:29
  Speaker 2: why a couple of reasons. Okay, the equity has far
• 2:33
  Speaker 2: surpassed the strike, which means that the intris value right
• 2:38
  Speaker 2: is not speculative. There's already value built into it, right,
• 2:40
  Speaker 2: and Video has already passed one hundred. Okay, that's the
• 2:43
  Speaker 2: first thing. The next thing is that the decay that
• 2:46
  Speaker 2: happens right. So in contracts, when we talk about x
• 2:48
  Speaker 2: orration dates, there's always decay right the data of like
• 2:52
  Speaker 2: the Greeks, when you study options trading, there's less sensitivity
• 2:56
  Speaker 2: to it because again, it is already passed a strike.
• 2:58
  Speaker 2: So let's say in Vidia's trading at one eighty five. Now,
• 3:01
  Speaker 2: if it pulls down to one seventy nine, if you're
• 3:04
  Speaker 2: near the money, that time decay. Right, you're going to
• 3:07
  Speaker 2: see a violetile move when you're deep in the money.
• 3:11
  Speaker 2: It's a move, but it's not as viletime. Here's the
• 3:14
  Speaker 2: other reason she doesn't. Okay, this is this is the
• 3:16
  Speaker 2: real reason. Let's say in Video moves from one eighty
• 3:20
  Speaker 2: five right to one eighty seven. That's a two dollars move, right,
• 3:25
  Speaker 2: two dollars move if you have the stock right, So
• 3:27
  Speaker 2: that's great. You got some shares. Each share grows by
• 3:29
  Speaker 2: two dollars and an options call. If in video runs
• 3:34
  Speaker 2: from one eighty five to twenty seven, you're talking about
• 3:37
  Speaker 2: maybe your three x on that percentage, right, But she's
• 3:40
  Speaker 2: deep in the money, so that percentage is a little
• 3:43
  Speaker 2: bit greater. So she's actually has protection on the way
• 3:47
  Speaker 2: up and safety a little bit on the way down,
• 3:49
  Speaker 2: so less decay, more upside intrinsic values already built in.
• 3:53
  Speaker 2: She's been doing this year over year, leap after leap.
• 3:59
  Speaker 2: She buys deep in the money calls. And the reason
• 4:02
  Speaker 2: is because she's already built the value. The wind's kind
• 4:04
  Speaker 2: of built in, and she's protecting herself on the way down.
• 4:07
  Speaker 2: It's a great strategy. It's more expensive to buy deep
• 4:10
  Speaker 2: in the money calls, but at this point she's just
• 4:12
  Speaker 2: renting and repeating, and I think for us we look
• 4:15
  Speaker 2: at it and say, hey, yes, it's expensive, but more importantly,
• 4:19
  Speaker 2: what are the companies Google? Yeah, the quality companies matter. Yeah,
• 4:24
  Speaker 2: the companies that she's choosen make a lot of sense.
• 4:26
  Speaker 2: And so it gives us again, if we're thinking about confirmation,
• 4:30
  Speaker 2: like those signs, those catass events, All right, what are
• 4:33
  Speaker 2: the people in Washington invest in Let's see right, Let's
• 4:36
  Speaker 2: go to Golobal trends and see what they're trading. And
• 4:38
  Speaker 2: if we start seeing those companies over and over, oh
• 4:41
  Speaker 2: they know something. We got to just follow the money.
• 4:44
  Speaker 3: And for those who are not invested in the option,
• 4:46
  Speaker 3: can I get prices away on the equity side.
• 4:49
  Speaker 2: Yep, let's do it.
• 4:52
  Speaker 3: Google entry would be two eighty five forty six. Is
• 4:56
  Speaker 3: why you would want to enter Amazon to twenty three seventeen,
• 5:03
  Speaker 3: and then Video one seventy three sixty five. So two
• 5:05
  Speaker 3: eighty five forty six for Google, to twenty three seventeen
• 5:09
  Speaker 3: for Amazon, and one seventy three sixty five for in Video.
• 5:16
  Speaker 1: Fact. But she also sold some stocks though.
• 5:20
  Speaker 2: Yeah.
• 5:20
  Speaker 1: She sold forty five thousand shares of Apple, She sold
• 5:25
  Speaker 1: twenty thousand shares of in Vidio and Amazon. She sold
• 5:30
  Speaker 1: ten thousand shares of Disney and five thousand shares of PayPal.
• 5:35
  Speaker 3: I'm not mad at some profit taking, Yoh, yeah, you
• 5:39
  Speaker 3: never lose by taking profit. Yeah, I'm not mad at
• 5:41
  Speaker 3: her taking some profit off the table.
• 5:43
  Speaker 1: She also purchased twenty five thousand shares of Alliance Bernstein.
• 5:47
  Speaker 2: Say the companies that she sold.
• 5:49
  Speaker 1: She sold Apple, Apple, and Vidia, Amazon, Disney, PayPal.
• 5:55
  Speaker 2: Okay, so Disney, well, Apple at the time that frame
• 6:00
  Speaker 2: in which she sold hit its all time high, and
• 6:02
  Speaker 2: Video hit its all time high, and Amazon hitting all
• 6:05
  Speaker 2: time high. PayPal Disney not so much. But those for sure,
• 6:09
  Speaker 2: that's great profit taking on those.
• 6:13
  Speaker 1: Yeah, yeah, okay Nancy Pelosi.
• 6:17
  Speaker 2: And that's just her. Her husband has his own portfolio. Yeah,
• 6:20
  Speaker 2: her husband, he'd have won. What different game they playing