MJ DeMarco
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The Pelosi PILL— How to Invest Like Nancy Pelosi and Make a Fortune (No Insider Information Needed!)
Nancy Pelosi is worth around $200 million.
Her civil servant salary?
It has never been more than $300,000 a year.
Her astounding net worth comes courtesy of her and her husband’s trading returns in the stock market.
Insider trading?
Perhaps, but this article is not about that —it's about the secret sauce behind the Pelosi fortune, what I call the Pelosi PILL —Pelosi's Insider Leveraged Leaps.
If you're unfamiliar, Pelosi's family portfolio has been nothing short of spectacular, outpacing even legendary hedge fund managers. She consistently beats the S&P. No, she isn't a closet quant with a PhD in portfolio analysis.
She and her husband are using a little-known strategy built on one of the most powerful tools in finance: leverage.
Better? This leverage is available to anyone with a simple click of the button.
To be clear, Pelosi doesn't buy stocks. She uses a financial bazooka known as long-dated, deep-in-the-money call options, or LEAPS. And it's a strategy that allows her to control powerhouse stocks for a fraction of the cost, amplifying their gains.
Altogether, the strategy is a masterclass in capital efficiency. Yep, I use it.
Imagine buying a house at a 45% discount, with the sole constraint being that you can only use it for 360 days a year.
This is the metaphor for the Pelosi PILL.
The Leverage Advantage: Ultimate Firepower, Minimum Capital
Say you want to invest in a hot tech stock, "MegaCorp," trading at $200 per share. To buy 100 shares, you'd have to shell out $20,000.
That's a significant chunk of capital tied up in one position.
Now, let's use the Pelosi PILL.
Instead of buying the shares, you buy a deep-in-the-money LEAPS call option. For example, you could buy a call option with a strike price of $100 that expires in two years. Because the stock is already trading $100 above your strike price, this option gives you the right to buy MegaCorp at a massive discount to its current value.
The Cost for this option might be around $110 per share (which is $100 of intrinsic value + $10 of time value). To control 100 shares, your total capital outlay is now just $11,000 ($110 x 100 shares).
Look at what you just did. You now control the exact same 100 shares of MegaCorp, but you did it for 45% less capital. That's $9,000 you just freed up to deploy on other opportunities. That’s leverage.
Capture the Upside Without the Bloat
"Okay," you're thinking, "it's cheaper, but do I get the same bang for your buck?"
Almost exactly.
This is critical.
A deep-in-the-money option like this has a "Delta" near 1.0. In plain English, this means for every $1 the stock price moves, your option's value moves by about $0.95.
You capture 95% of the stock's price appreciation while having risked almost half the capital. You live in the house at a 45% discount, while only giving up 5 days of use.
If MegaCorp stock rallies from $200 to $250, the shareholder who spent $20,000 makes $5,000. Your option, for which you paid $11,000, increases in value by roughly $4,750. You made nearly identical profits with a fraction of the deployed capital. Your return on investment absolutely demolishes that of the traditional stockholder.
This is how Pelosi invests in the markets.
This is how her family is worth hundreds of millions from a civil servant's salary.
Insider information?
Perhaps.
But even so, you can follow her trades in public filings.
If not, you can always use the Pelosi Pill to buy long-dated, deep in-the-money LEAPS on any company, get a 45% discount on the stock, and enjoy a 95% upside.
Here are just a few LEAPS based on today's current prices.
Note: Pelosi currently holds TEM Leaps.
The Frosting on the Cake: Get Paid While You Wait
I've been trading options for 20+ years.
But here's where the strategy becomes truly powerful.
Because you own a long-term option, you can now act like a shareholder. You can generate monthly or quarterly income against your position by writing short-term, out-of-the-money calls.
You still get upside.
You get insurance on the downside.
And you can repeat.
This is known as a "Poor Man's Covered Call."
You can sell a call option that expires in 31 days with a strike price of, say, $220. You collect immediate cash (premium) for selling that contract. This income lowers your cost basis on your original LEAPS purchase, further juicing your returns and reducing your risk.
Here are prices of short-dated options for the instruments cited above:
So, not only have you taken control over the asset at a 45% discount, you are now effectively renting it out at full premium.
These trades are positive theta. In layman's terms? You are getting paid daily to hold the trade as the option moves to expiration.
Theta of long leap: -$2/day (it costs you $2/day to hold the trade)
Theta of short call: +$11/day (you get paid $11/day to hold the trade)
You get paid $9/day for holding this trade, like getting paid to invest on the upside of a growing company.
45% discount.
Rent payments.
Time payments.
Yes, I do this every single week.
The bottom line is this: rich folks aren't playing the same game as the average investor. They're not tying up huge amounts of cash to plod along with the market. They use leverage to maximize control bullish, growing companies for a discount, and create cash flow from their positions.
Stop thinking in terms of buying shares, but controlling them. That’s how you get outsized returns, and without needing potentially illegal Insider information.
Nancy Pelosi is worth around $200 million.
Her civil servant salary?
It has never been more than $300,000 a year.
Her astounding net worth comes courtesy of her and her husband’s trading returns in the stock market.
Insider trading?
Perhaps, but this article is not about that —it's about the secret sauce behind the Pelosi fortune, what I call the Pelosi PILL —Pelosi's Insider Leveraged Leaps.
If you're unfamiliar, Pelosi's family portfolio has been nothing short of spectacular, outpacing even legendary hedge fund managers. She consistently beats the S&P. No, she isn't a closet quant with a PhD in portfolio analysis.
She and her husband are using a little-known strategy built on one of the most powerful tools in finance: leverage.
Better? This leverage is available to anyone with a simple click of the button.
To be clear, Pelosi doesn't buy stocks. She uses a financial bazooka known as long-dated, deep-in-the-money call options, or LEAPS. And it's a strategy that allows her to control powerhouse stocks for a fraction of the cost, amplifying their gains.
Altogether, the strategy is a masterclass in capital efficiency. Yep, I use it.
Imagine buying a house at a 45% discount, with the sole constraint being that you can only use it for 360 days a year.
This is the metaphor for the Pelosi PILL.
The Leverage Advantage: Ultimate Firepower, Minimum Capital
Say you want to invest in a hot tech stock, "MegaCorp," trading at $200 per share. To buy 100 shares, you'd have to shell out $20,000.
That's a significant chunk of capital tied up in one position.
Now, let's use the Pelosi PILL.
Instead of buying the shares, you buy a deep-in-the-money LEAPS call option. For example, you could buy a call option with a strike price of $100 that expires in two years. Because the stock is already trading $100 above your strike price, this option gives you the right to buy MegaCorp at a massive discount to its current value.
The Cost for this option might be around $110 per share (which is $100 of intrinsic value + $10 of time value). To control 100 shares, your total capital outlay is now just $11,000 ($110 x 100 shares).
Look at what you just did. You now control the exact same 100 shares of MegaCorp, but you did it for 45% less capital. That's $9,000 you just freed up to deploy on other opportunities. That’s leverage.
Capture the Upside Without the Bloat
"Okay," you're thinking, "it's cheaper, but do I get the same bang for your buck?"
Almost exactly.
This is critical.
A deep-in-the-money option like this has a "Delta" near 1.0. In plain English, this means for every $1 the stock price moves, your option's value moves by about $0.95.
You capture 95% of the stock's price appreciation while having risked almost half the capital. You live in the house at a 45% discount, while only giving up 5 days of use.
If MegaCorp stock rallies from $200 to $250, the shareholder who spent $20,000 makes $5,000. Your option, for which you paid $11,000, increases in value by roughly $4,750. You made nearly identical profits with a fraction of the deployed capital. Your return on investment absolutely demolishes that of the traditional stockholder.
This is how Pelosi invests in the markets.
This is how her family is worth hundreds of millions from a civil servant's salary.
Insider information?
Perhaps.
But even so, you can follow her trades in public filings.
If not, you can always use the Pelosi Pill to buy long-dated, deep in-the-money LEAPS on any company, get a 45% discount on the stock, and enjoy a 95% upside.
Here are just a few LEAPS based on today's current prices.
Note: Pelosi currently holds TEM Leaps.
The Frosting on the Cake: Get Paid While You Wait
I've been trading options for 20+ years.
But here's where the strategy becomes truly powerful.
Because you own a long-term option, you can now act like a shareholder. You can generate monthly or quarterly income against your position by writing short-term, out-of-the-money calls.
You still get upside.
You get insurance on the downside.
And you can repeat.
This is known as a "Poor Man's Covered Call."
You can sell a call option that expires in 31 days with a strike price of, say, $220. You collect immediate cash (premium) for selling that contract. This income lowers your cost basis on your original LEAPS purchase, further juicing your returns and reducing your risk.
Here are prices of short-dated options for the instruments cited above:
So, not only have you taken control over the asset at a 45% discount, you are now effectively renting it out at full premium.
These trades are positive theta. In layman's terms? You are getting paid daily to hold the trade as the option moves to expiration.
Theta of long leap: -$2/day (it costs you $2/day to hold the trade)
Theta of short call: +$11/day (you get paid $11/day to hold the trade)
You get paid $9/day for holding this trade, like getting paid to invest on the upside of a growing company.
45% discount.
Rent payments.
Time payments.
Yes, I do this every single week.
The bottom line is this: rich folks aren't playing the same game as the average investor. They're not tying up huge amounts of cash to plod along with the market. They use leverage to maximize control bullish, growing companies for a discount, and create cash flow from their positions.
Stop thinking in terms of buying shares, but controlling them. That’s how you get outsized returns, and without needing potentially illegal Insider information.
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