Is Pelosi UBER LEAP trade a smart move?
Hey everyone,
I saw the recent disclosure that Nancy Pelosi (well, her husband Paul) just bought 200 contracts of UBER $50 Calls expiring in March 2027.
Uber is currently trading around $70-$74, meaning they bought deep In-The-Money (ITM) LEAPs. I know their portfolio has a ridiculous track record with names like NVIDIA and Apple, so it’s tempting to just blindly copy the trade.
I’m looking at doing the same on Robinhood, but I wanted to get some feedback first. From a mechanics standpoint, I get why they did it:
Synthetic Stock: Buying the $50 strike gives them a ton of intrinsic value upfront.
High Delta: It captures almost 1:1 movement with the actual stock but costs a fraction of the price of 20,000 shares.
Tons of Time: March 2027
The business catalysts seem solid too (autonomous vehicle partnerships with Waymo, profitable buybacks, app expansion into retail/travel).
But here’s my hesitation:
- Liquidity: The bid-ask spread on deep ITM LEAPs can be notoriously wide.
- Is anyone else eyeing this trade or already in it? Is it safer to just buy the equity at this point, or are deep ITM LEAPs the move here?
Appreciate any insights, especially on navigating the wide spreads if I do pull the trigger.