Nancy Pelosi Invests in Alphabet and Amazon. Should Investors Follow Suit and Buy the Stocks?

Whether you like or dislike her politics, one thing former House Speaker and current Rep. Nancy Pelosi has proven to be is a great investor. She, or whoever is making her investment decisions, has had a knack especially when it comes to investing in technology stocks.Earlier this month, it was disclosed that Pelosi sold shares of Apple while buying positions in Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Both new investments were done in the form of call options, which give investors the right to buy a stock in the future at a certain strike price. In both cases the call options were in the money, which means the stock prices are currently above the strike prices.Call options are considerably more risky than just buying a stock, as call options can become worthless if the price of the stock is below the option price when the option expires. In the money options can be a little less risky since the stock price is already above the strike price when the investment is made. However, this is still a more leveraged and risky investment.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool