Politician Buying

The Sky is Not the Limit for Pelosi

The Sky is Not the Limit for Pelosi

The first woman speaker of the United States, Democrat Nancy Pelosi, has been making history in the country’s politics. On the other hand, her husband Paul Pelosi has been garnering a reputation too: Remarkable investments in the stock market.

From the end of 2020 to late summer in 2021, Pelosi made multiple high-profile trades. Most of these had, and still have, potential price increases scribbled in their future.

These included a large number of call options, made after the 2020 elections.

Eye-Catching Trades

Pelosi made the following trades on 22 December 2020:

  • 25 call options of Tesla Inc (NASDAQ: TSLA) at a strike price of $500 and an expiration date of March 18, 2022.
  • 100 call options of Walt Disney Co (NYSE: DIS), bought for a strike price of $100 with an expiry due on January 21, 2022.
  • 100 call options of Apple Inc (NASDAQ: AAPL). Their expiry is scheduled for January 21, 2022, priced at $100.

Additional purchases were made from May to early July 2021:

  • On May 21, 2021, an additional 50 call options of $AAPL were bought, priced at $100, with expiry due on June 17, 2022.
  • The same day, Pelosi bought 20 call options of Amazon.com Inc (NASDAQ: AMZN). These will expire on June 17, 2022, and have a strike price of $3,000.
  • On June 3 and 23 July 23, 2021, 50 call options of NVIDIA Corporation (NASDAQ: NVDA) stock apiece were purchased. They had a strike price of $400 and $100 respectively, and expiration dates of June 17, 2022, and September 16, 2022.

Source: Capitol trades

All seven trades were reported within the 40-day mark, and so far, none of the options has been availed yet. With the exception of Amazon, all companies are headquartered in California. This is in line with Pelosi’s trend of investing, mostly, in Californian companies.

Whopping Price Rise

Tesla units have been going up and down since the beginning of 2020. So far the sales have dropped but are predicted to ride high again. If availed, the options would have fetched Pelosi a profit of 76.16% in January during Tesla’s record-breaking session.

Despite the threatening presence of the COVID-19 Delta variant, Disney theme parks are reopening. 2021's Q2 alone generated profits that were almost three times the results of Q1. Since Pelosi’s purchase, the price of Disney stock has been wavering from $170 to $200 wavelength. At best, Pelosi could have netted a 98% increase in profits.

Apple too has been making headlines, earning the title of “2021’s most valuable company”. Its share price, which had been going steady early in the year, rose to significant gains in the summer. Its price increase, significantly during mid-August, would have netted a profit increase of almost 50%.

Amazon has been in the market as a haven for individuals looking to start their businesses online. This made them even more popular during the pandemic. Other companies, too, have been following its example including Macy's. More recently, Amazon is set to expand its empire with physical retail stores that are due to open in California and Ohio. Hence, it’s not surprising that the company’s stock hit a mark of around $3,700 on July 8; this would have earned Pelosi roughly $75,000. Although the price has been bouncing around since then, the stock is expected to go higher in the future.

Lastly, Nvidia has been performing steadily throughout the past months, hitting a significant value of $226.36 per share on August 27, 2021. With this rate, Pelosi could have netted a profit twice the size of his July buyings of NVDA.

What the Future Holds

In retrospect, the value of these trades could be inferior to that of Pelosi’s earnings from Alphabet earlier this year. But they are certainly not to be ignored.

Each company’s stock price and profit earnings are predicted to ascend. No doubt, the same may be said for Pelosi’s future earnings.

Read more analysis of congressmen and congresswomen trades on our blog.

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