Former House Speaker Nancy Pelosi and her enterprise capitalist husband are once more betting big on AI software giant Nvidia after dumping their shares in the corporate amid scrutiny of congressional stock trading, in accordance with recent filings.
The X account often known as Congresstrading, which tracks stock trades executed by lawmakers on Capitol Hill, published a screenshot of a disclosure form that showed that Pelosi, the San Francisco Democrat, and sitting congresswoman, bought 50 call options with a strike price of $120 and an expiration date of Dec. 20, 2024.
The transaction, made last month, was for $2 million, in accordance with popular stock-trading news site Unusual Whales. The disclosure form showed the quantity as between $1 million and $5 million.
“Pelosi bet thousands and thousands on $NVDA in November using call options. Using a deceptive tactic, she purposely disclosed this on the Friday before Christmas weekend to avoid media coverage,” Congresstrading tweeted.
The Post has sought comment from Nancy and Paul Pelosi.
Pelosi, 83, sparked outrage when she was House Speaker by resisting calls to enact laws that might bar sitting members of Congress and their spouses from buying and selling stock in firms they regulate.
Santa Clara, Calif.-based Nvidia, which is listed on the Nasdaq index, closed Friday at 488.30. Trading resumes on Tuesday after the markets were closed for Christmas.
Former House Speaker Nancy Pelosi and her husband, enterprise capitalist Paul Pelosi, remain energetic stock traders despite her being a sitting member of Congress. AFP via Getty Images
congresstrading is first to report: Pelosi bet thousands and thousands on $NVDA in November using call options. Using a deceptive tactic, she purposely disclosed this on the Friday before Christmas weekend to avoid media coverage. pic.twitter.com/WJACzseMgr
— congresstrading.com (@congresstrading) December 22, 2023
Financial experts said that the Pelosis’ investment shows they’re bullish on Nvidia in the approaching 12 months.
A call option “grants the holder the fitting, but not the duty, to purchase a selected quantity of an underlying asset at a predetermined price inside a specified time-frame,” Justin Rush, a financial planner with the Michigan-based family wealth management firm Nemes Rush, told The Post on Monday.
“This might be advantageous while you anticipate the worth of the asset will rise, allowing you to purchase it at a lower, predetermined cost,” he added.
Paul Pelosi is a noted trader and the couple has a reported net value of greater than $140 million. They’ve netted thousands and thousands of dollars in make the most of buying call options on blue-chip stocks akin to Google, Salesforce, Roblox, and Disney.
In July of last 12 months, the pair announced that they sold 25,000 shares of Nvidia at a median price point of $165.05 a share — netting themselves a sale price of $4.125 million.
Pelosi bought 50 call options of Nvidia stock with a strike price of $120 and an expiration date of Dec. 20 of next 12 months. REUTERS
The Pelosis ended up losing $341,365 on the trade, in accordance with the financial news site Benzinga.
The couple also sold 50 call options on Nvidia with a strike price of $100 and an expiration of Sept. 16, 2022, for a lack of $361,476, it was reported by Benzinga.
On the time, the moves raised eyebrows since Nvidia shares rose within the run-up to Congress voting on the CHIPS Act, the Biden administration’s laws geared toward boosting domestic semiconductor manufacturing.
The overall value of the transaction is between $1 million and $5 million, in accordance with disclosure forms. X / @congresstrading
Pelosi publicly supported the CHIPS Act and Nvidia, a semiconductor manufacturer, stood to realize from the law’s passage.
Selling off shares of Nvidia proved to be a financial mistake for the Pelosis because the stock price has surged by near 200%.
If the couple had held on to their 25,000 shares, the worth of their stake can be value in excess of $12.2 million — netting them a profit of greater than $8 million.