Former House Speaker Nancy Pelosi and her venture capitalist husband are again betting big on AI software giant Nvidia after dumping their stake in the company amid congressional scrutiny of stock trading, according to a new filing.
An X account known as Congresstrading, which tracks stock trades executed by lawmakers on Capitol Hill, published a screenshot of a disclosure form showing that Pelosi, a San Francisco Democrat and member of Congress, bought 50 call options with a strike price of $120 and a date expires on Dec 20, 2024.
The transaction, made last month, was for $2 million, according to the popular stock trading news site Unusual Whales. The disclosure form shows amounts between $1 million and $5 million.
“Pelosi bet millions on $NVDA in November using call options. Using deceptive tactics, he deliberately disclosed this on the Friday before the Christmas weekend to avoid media coverage,” Congresstrading tweeted.
The Post has requested comment from Nancy and Paul Pelosi.
Pelosi, 83, sparked outrage when she became Speaker of the House by rejecting calls for legislation that would prevent members of Congress and their spouses from buying and selling stock in companies they control.
Santa Clara, Calif.-based Nvidia, which is listed on the Nasdaq index, closed Friday at 488.30. Trading resumed on Tuesday after the market was closed for Christmas.
Former Speaker of the House Nancy Pelosi and her husband, venture capitalist Paul Pelosi, remain active stock traders even as he becomes a member of Congress. AFP via Getty Images
congress was the first to report: Pelosi bet millions $NVDA in November using call options. Using deception tactics, he deliberately revealed this on the Friday before the Christmas weekend to avoid media coverage. pic.twitter.com/WJACzseMgr
— congresstrading.com (@congresstrading) December 22, 2023
Financial experts say that Pelosis’ investment shows they are bullish on Nvidia in the coming year.
Call options “give the holder the right, but not the obligation, to buy a specified quantity of the underlying asset at a predetermined price within a specified time period,” Justin Rush, a financial planner with Michigan-based family wealth management firm Nemes Rush, told The Post on Monday.
“This can be advantageous when you expect the value of the asset to increase, allowing you to buy it at a lower, fixed cost,” he added.
Paul Pelosi is a famous businessman and the couple has a reported net worth of more than $140 million. They have made millions of dollars in profits from buying call options on high-end stocks like Google, Salesforce, Roblox and Disney.
In July of last year, the pair announced that they were selling 25,000 Nvidia shares at an average price of $165.05 per share — netting a sale price of $4.125 million.
Pelosi bought 50 Nvidia stock call options with a strike price of $120 and an expiration date of December 20 next year. Reuters
Pelosis ended up losing $341,365 on the trade, according to financial news site Benzinga.
The pair also sold 50 call options on Nvidia with a strike price of $100 and expiration on September 16, 2022, for a loss of $361,476, it was reported by Benzinga.
At the time, the move sparked concern as Nvidia shares rose ahead of Congress’ vote on the CHIPS Act, Biden administration legislation aimed at boosting domestic semiconductor manufacturing.
The total transaction value is between $1 million and $5 million, according to the disclosure form. X / @berkongres
Pelosi has publicly supported the CHIPS Act and Nvidia, a semiconductor manufacturer, stands to benefit from the legislation’s passage.
Selling Nvidia stock proved to be a financial mistake for Pelosis as the stock price has soared nearly 200%.
If the couple had held their 25,000 shares, the value of their holdings would have been worth more than $12.2 million — netting them a profit of more than $8 million.
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Source: thtrangdai.edu.vn/en/
