Pelosi Adds More Calls: Is Options Trading Gambling or Investing?

For Nancy Pelosi, options may well represent long-term investments. Nancy Pelosi bought call options for Alphabet, Amazon and Nvidia (50 contracts, strike price of $80, expiry on January 16, 2026) and Vistra. 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. 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?

Options trading is a versatile tool, viewed differently depending on the approach. It can resemble gambling when used speculatively, especially with out-of-the-money options or high-risk strategies, and particularly when traders lack education. However, options can also be used for investment purposes, including hedging, income generation, and volatility management. The key to successful options trading lies in education, experience, a well-defined strategy, and, crucially, robust risk management. Therefore, options trading isn't inherently gambling; it becomes so only through improper use.
Replying to @koolgal:🙏//@koolgal:Well said. 😍😍😍//@ZEROHERO:Options trading is a strategy game. Master the various types of options strategies and the ability to apply it at the right time and situation with calculated risk coupled with economic data and/or earnings seasons can reap handsome rewards. 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 e
Replying to @jlow22:Time to put knowledge into practice 💪//@jlow22:Good advise //@ZEROHERO:Options trading is a strategy game. Master the various types of options strategies and the ability to apply it at the right time and situation with calculated risk coupled with economic data and/or earnings seasons can reap handsome rewards. 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 & p
Replying to @AyKing:Yes. Just need the lesser risk strategy. Always count the losses first! 🤗//@AyKing:Agree with you :) I like options. There are strategies which you can use it for investment, trading. //@ZEROHERO:Options trading is a strategy game. Master the various types of options strategies and the ability to apply it at the right time and situation with calculated risk coupled with economic data and/or earnings seasons can reap handsome rewards. 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 ,ta
Replying to @koolgal:My pleasure as always ☺️//@koolgal:Thanks for sharing your awesome insights 😍😍😍//@ZEROHERO:Options trading is a strategy game. Master the various types of options strategies and the ability to apply it at the right time and situation with calculated risk coupled with economic data and/or earnings seasons can reap handsome rewards. 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 ot
Replying to @SPACE ROCKET:So more ppl can understand we need to apply what we’ve learned, especially from mistakes 😉//@SPACE ROCKET:Interesting ref to driving haha! 🙌//@ZEROHERO:Options trading is a strategy game. Master the various types of options strategies and the ability to apply it at the right time and situation with calculated risk coupled with economic data and/or earnings seasons can reap handsome rewards. 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
avatarAyKing
01-27
Replying to @ZEROHERO:Agree with you :) I like options. There are strategies which you can use it for investment, trading. //@ZEROHERO:Options trading is a strategy game. Master the various types of options strategies and the ability to apply it at the right time and situation with calculated risk coupled with economic data and/or earnings seasons can reap handsome rewards. 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
Disclaimer: Whatever I say or post doesn't act as financial advice, so please do your due diligence before making any decision. I would think options trading is like a leveraging tool, it allows an individual to invest in a company with high stock price, with a modest amount of money in their account. It allows them to invest in companies that in a normal circumstance couldnt be done.  But with that said, before you dive into the world of options, please ensure you understand the machanisms of it (E.g Sell call/put, Buy call/put, different options strategies) and have an extremely clear game plan. Set your stop losses, prioritize how much you might lose before you consider how much you might earn from the trade.  It is a highly lucrative strategy, however you will lose a lot too
avatarAqa
01-27
Options trading can be a sub-type of strategic investment if coupled with expert analysis and good strategy. It is widely opinioned as gambling because many factors contribute to market changes. It is extremely difficult to adjust our trades by the seconds and day faculty to monitor the market direction every second. Thanks @Tiger_comments
avatarAqa
01-27
Options trading can be a sub-type of investment if coupled with expert analysis and good strategy. It is widely opinioned as gambling because many factors contribute to market changes. It is extremely difficult to adjust our trades by the seconds and day faculty to monitor the market direction every second. Thanks@icycrystal @Daily_Discussion @TigerStars @Tiger_comments @TigerEvents  

From Capitol Trades to Market Plays: Decoding the Risks and Rewards of Options Trading

In recent years, particularly during the economic turbulence caused by the global health crisis, options trading has surged in popularity among retail investors in the United States. Data from the Options Clearing Corporation shows that during the peak of the epidemic, the volume of options traded soared, with daily average trading volumes in 2020 increasing by about 50% compared to the previous year. However, this increase in activity has not universally led to success; statistics suggest that approximately 80% of retail options traders end up losing money, with average losses often exceeding initial investments by significant margins. According to a 2022 report by the Financial Industry Regulatory Authority (FINRA), only about 20% of retail investors consistently profited from optio
From Capitol Trades to Market Plays: Decoding the Risks and Rewards of Options Trading
Options trading is a strategy game. Master the various types of options strategies and the ability to apply it at the right time and situation with calculated risk coupled with economic data and/or earnings seasons can reap handsome rewards. 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
Replying to @koolgal:I’m sure you are ready to rock and roll with options trading. Can consider with selling cash secured puts first. Been guiding some friends with positive results for last 3 months. You will not regret it. All the best and huat big in 2025! 🤑//@koolgal:🌟🌟🌟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 su
for most people, buying options is gambling. you will only win if the stock price move in the correct direction. but for Pelosi she knows... I'm sure she has information [Happy]
avatarAN88
01-26
investment if you know what you are doing
I would love to learn and explore options . It’s very interesting!
the inherent chance that the price could chance rapidly is what we all dread but it's there due diligence and good information can reduce the chance elements of trading options. I'd say it's investing as gambling tends to be more about luck than judgement⭐
All about insider trading. lol
avatarECLC
01-26
Think more complicated and risky with Options Trading. It is easier to start investing in strong stocks with consistent dividends.
gambling