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Pelosi banks $1.4M in 90 days from Nvidia stock option trade, outraging watchers

Published 02/26/2024, 04:58 PM
Updated 02/26/2024, 04:58 PM
© Reuters

Late last year, U.S. Representative Nancy Pelosi reported a transaction to purchase call options in NVIDIA Corporation (NASDAQ:NVDA). After a massive rally in the stock this year related to breathtaking AI uptake and the company's strong financial results, Pelosi is now said to be sitting on a significant windfall profit.

Nancy Pelosi Nvidia Call Options Trade

According to historical options data, Pelosi paid an estimated $380 per option contract in late November when she bought 50 December 20, 2024, 120 call options. Each option contract represents 100 shares of the underlying stock.

Those same options are now worth about $660 per option contract, suggesting an estimated gain of $1.4 million. When Pelosi made the trade known publicly in late December, it was disclosed she paid between $1 million and $5 million for the options.

Speaking to Investing.com, Chris Josephs, co-founder of Autopilot, a service that automates your portfolio by copying top-notch traders in real-time, explained that the NVDA buy "was one of the larger ranges."

Joseph, who also runs the @PelosiTracker_ account on X (formerly Twitter), added that the option buy occurred on November 22, 2023. The stock is up 63% since then.

"From an ethical perspective, I believe it is extremely harmful for politicians to trade individual stocks," argues Joseph. "There are numerous jobs out there that don't allow employees from trading, yet our most powerful [A]mericans can."

"It creates distrust in society which inevitably erodes the longer-term trust in our institutions," he adds. "They shouldn't be allowed to do it. We started Autopilot as the first way to automatically copy their trades as a way to bring more awareness to the cause."

Elsewhere, Josephs stated there are "numerous other politicians who own Nvidia, including Markwayne Mullin (R), David Kustoff (R), Mike Mccaul (R), Josh Gottheimer (D), & more."

He highlighted that Senator Mullin purchased $30,000 of Badger Meter Inc (NYSE:BMI), a producer of automated water meter technology. Joseph, via the @PelosiTracker_ account, noted that the EPA recently passed a mandatory requirement for utilities to upgrade to newer water-automated systems and that "Mullin just so happens to sit on the Environmental Services Senate Committee."

Josephs told Investing.com that "a lot of it comes across as sketchy, mainly because the politicians sit on committees that oversee these things."

While he notes that stock trades taken by politicians are not usually market-moving, he revealed that today, Pelosi disclosed a new buy into the cyber security firm Palo Alto Networks Inc (NASDAQ:PANW), which rose as much as 10% before ending the session up 7%.

"I've never seen this happen the same day as a disclose so maybe more people are catching on and paying attention," he states.

A public disclosure showed that Pelosi bought 70 call options on Palo Alto Networks with a $200 strike price and expiry on 01/17/25. 50 were bought on 02/12/24 and 20 were bought on 02/21/24. Pelosi is estimated to have paid about $1.1 million for the position.

Nancy Pelosi Salary

According to Forbes, U.S. representatives and senators are given a lifetime pension and a taxpayer-matched savings plan with contributions of up to 5% of salary. They are also entitled to receive Social Security benefits.

Pelosi was once the most highly compensated member of Congress. Her annual salary was reportedly $223,500. This suggests she made more than six times her annual salary from this one NVDA option trade.

Nancy Pelosi's Stock Portfolio

Joseph further states that Pelosi also has other investments in artificial intelligence and big tech stocks, including her top two positions of Microsoft Corporation (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL), although they couldn't identify how large her total portfolio is. Nevertheless, the year-to-date performance is up 12%, according to Josephs.

Nvidia Stock Price

Over the past 12 months, Nvidia shares have rallied significantly, climbing more than 240%. They touched an intraday high of over $823 per share on Friday.

So far this year, the stock is up almost 61% after closing Monday's session around the $791.20 per share mark. Its current market capitalization is $1.98 trillion.

Last week, Rosenblatt lifted its price target for Nvidia to a new Street high of $1,400 from $1,100, reiterating a Buy rating. The firm said Nvidia "smashed" its consensus estimates for quarterly earnings, as "the shift to accelerated compute away from general compute is reaching a tipping point, and a disruptive new app, generative AI, is creating a whole new industry.”

Nancy Pelosi's office has not responded to a request from Investing.com to comment on the Nvidia stock option trade at the time of this publication.

Latest comments

cashkopilka.com.    weri  well
wow! all these maga-cultists and conspiracy-theorists running in to attack pelosi for conducting a perfectly normal and legal trade.. not only is she a democrat, but also a woman! with power!! hate..fear..shiver...
max max,...LMAO do you drive a big yee yee truck too? you must be overcompensating for your tiny impotent pencil thick wiener.
A woman with power....all she did was sound like a junior high school principal for four years trying to expel Trump.  How about Obama-care?  We'll pass it first, and then see what's in it.
jimmy jimmy.. projecting much are we...?
Wow!  All these knights in shining armor run in to defend Old Jezebel, (as if she needs any help).  Watch out for Jehu (Trump) when he gets elected.
investing news doing politricks...instead of economics....
Democrats are corrupt to the core like all communists.
Republicans are just jealous, all they can is buy golden sneakers and give all their money to stinky diaper donald. No wonder they are upset.
non trader, how many comments now?
Nah, Old Joe never whispered to Jezebel a year or two back where he'd like to pump billions into chip production in the future. (It could have happened.)
"Old Joe never whispered to Jezebel a year or two back where he'd like to pump billions into chip production in the future"  - and did Nvidia get any of those taxpayers' money?  if not then your conspiracy theory is not really relevant here, is it?
My theory has more relevance to the story than any of the other posts here that are simply people attacking one another.  AND....it's getting people to comment on it, which is why I like to throw around these insignificant thoughts.
  Don't want no short dick man ! Don't want no short dick man! ahahahhahaha
Congressional term limits is a material solution to curbing political enrichment and deterring the creation of family dynasties from this sort of behavior. Using the people's house to make one's own family rich is unethical. They are there to serve the constituents at their expense, not self enrichment. If politicians can't act responsibly and resist the temptation, then our Democracy, the people, need to remove the temptation for them.
I hate to break the news to all you nay sayers, but the smart money.. the traders that use a certain form of technical analysis, were very aware of nvidia's high potential for a serious move to the upside. I doubt that Pelosi had the time or ability do the work on this stock, and her trade was probably directed by a broker who specializes in options trading and this form of technical analysis. it's astonishing how many traders are ignorant of how these markets actually move, and why.
All Federal politicians should be required to put their money in blind trusts, managed by a 3rd-partt fiduciary. This is blatant corruption at the highest levels of government.
I actually agree with all federal politicians, and that should include all supreme court justices, publiashing their annual tax returns and putting the bulk of their assets in blind trusts while they are still in the govt.......that said, I dont' know why Pelosi's holding in Nvidia stock is so outrageous, it's not like she traded with insider info or give Nvidia govt contracts to make Nvidia stock price to go up
no, they passed legislation exempting members of congress from insider trading laws. look it up.
a loser
In 90 days?!?!?!
The sound of money in Pelosi pocket sounds better than all the rants from the normal citizens.......
funny how the maga cultists are outraged by this trade that was completely legal and above the table, and at the same time they condone and even applaud trump defrauding banks, insurance companies, and even the 'trump-university'-students.
sym, you are a funny one.. respectful citizenry died with the arrival of trump, and can possibly be reborn once he's in prison and his poison is washed away...
meow
🤡
not fair as congressman has insider knowledge that Nvidia is the stock to buy,  Poor Buffet and myself has to plough thro tonnes of earning reports to make decision. I also saw those chatgroup in Reddit cashing it in on Nvidia,  .  Maybe Reddit should be banned as their groups are having unfair advantage over me
"not fair as congressman has insider knowledge that Nvidia is the stock to buy" -- what inside knowledge did Pelosi has on Nvidia?  it's not like Nvidia's stock price went up because of new govt contracts or access to secret govt intel.....
perhaps if you we're willing to hire a paid professional, you too could do million dollar trades. this article is about nothing, I'm sure the speaker has a paid broker-adviser that did the work, and initiated the trade. if you had used the right form of anylsis you would have known nvida was ready for a major rally.
Millions vote for her. Why?
Intelligent,Classy lady
Rotten politicians. No sure why people continue voting for them. It is shameful that we tax payers pay for their service
So she knew. What did she know. Call the ge$tapó.
haha outraged because they didn't do it. Who cares!
Nice to be In politics. What are they called? White collar maffia?
you sound envious ZS..she used a knowable broker to initiative her trades.
Paliticol Previlages...
Dumb luck like this creates a lot of smoke. Smoke that needs to be investigated.
a good broker adviser causing smoke???
you're sounding very jealous Todd. she used a good broker-adviser.
How much does Pelopsi pay you to defend her? Now I understand why you always bull. Shameless Criminal
Using their political privileges to self benefit again ? Who's holding these people accountable for ethics ? There needs to be an ethics oversight commission who can assign agents to investigate and hold these people accountable if they used insider info privileges. Where they are found guilty, then fine them and band them from trading for life. But I will say they sure trade a lot better than the Professionals. Just beginners dumb luck ? How did Paul P know to buy Nvda a couple months before the public was aware of the launch of AI. There is smoke, that should be investigated..
Scum… They dont even care that we are all watching.. As they are destroying OUR economy.. They know exactly when its time to get out.. The rest of us are terrified to invest because we dont know when theyll release the next virus.. Or take us to war with Russia.. TRUMP 2024
Good job!
Insider trading is an advantage the many polititions have enjoyed. Word of mouth is all but impossible to stop.
Someondd we should take over her desk
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