The Pelosi Options Trading Strategy: 3 Key Takeaways

Nancy and Paul Pelosi have become a subject of fascination for retail investors. Paul is an investment banker and Nancy is the speaker of the U.S. House of Representatives.

Using data derived from Unusual Whales, a website geared at alerting retail investors to large and unusual options flow movements, we can get a clearer picture of what strategies Paul and Nancy use in the markets.

In 2021, the Pelosi portfolio held a total of $45,707,479 in assets, with 56% of the holdings in the technology sector.

Using the chart above, we uncover Pelosi's plays to infer the strategies used that helped them beat the S&P 500 by 24% in 2021:

  • Calls on big tech - The Pelosiss had strong conviction in the technology sector in 2021
  • In-the-money (ITM) LEAPS - They purchase contracts with an expiration date of one year or greater
  • Sell/Exercise - In each case outlined above, the contracts were exercised, or sold the day of expiration

Photo: courtesy of Gage Skidmore via Flickr

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