Posted on 02/27/2024 5:56:18 AM PST by Oldeconomybuyer
California Rep. Nancy Pelosi and her husband, venture capitalist Paul Pelosi, could earn a windfall of more than $1 million thanks to a bullish bet Paul made on a Bay Area tech company.
The couple is eyeing Nvidia, a software and graphics chip company headquartered in Santa Clara. According to a recent financial filing Nancy submitted with the Clerk of the House of Representatives, Paul purchased 50 call options in Nvidia with a strike price of $120. The purchase was made on Nov. 22, 2023, and the contracts expire on Dec. 20, 2024.
Paul’s call options have a strike price of $120. The difference between that price and the share price as of Monday is $678. That means if Paul exercised his options in cash settlements today, he could earn a gross profit of just under $3.4 million ($678 times 5,000 shares). If we hold the assumption that he paid $1.75 million in premiums, his net profit on the deal would be a little more than $1.6 million.
That $1.6 million figure represents about nine times the annual salary of most members of Congress, which has been about $174,000 per year since 2009. Members of leadership in both the Senate and the House do earn more; from 2019 to 2023, when Nancy was the speaker of the House for the second time, she made $223,500 per year. The potential windfall from this single trade is approximately seven times that amount.
To be clear, there is no evidence Pelosi engaged in insider trading here. But there is evidence that a very rich, powerful person may become even more rich, thanks in part to her existing wealth.
(Excerpt) Read more at sfgate.com ...
They are SOOOOOOO brilliant when it comes to investing eh?
It has been reported Nvidia is Chinese controlled.
all communists are.
Nvidia has been on a tear for years
They shouldn’t be allowed to invest or even control investments while serving as a congress critter
Here’s hoping those NVDA holdings are soon part of their estate.
(full disclosure: I’d be typing this from a chaise lounge on a beach somewhere if I’d not been such a pee-pants about NVDA’s valuation over a year ago)
Insider trading
That's called "terrified journalist" afraid of the tenets of journalism and not asking questions.
“Nvidia has been on a tear for years”
That’s why Dell is doing so well.
Insider trading will do that.
Yes, it was never under $300/share in 2023.
So, how did he buy a CALL option(the right to be long)
at $120/share in 2023?????
“Paul purchased 50 call options in Nvidia with a strike price of $120. The purchase was made on Nov. 22, 2023, and the contracts expire on Dec. 20, 2024.”
The LOW price in November 2023 was $403/share. Nvidia has not been $120/share since August 2020.
“So, how did he buy a CALL option(the right to be long)
at $120/share in 2023?????”
He paid a lot for it.
Big time in the money, expensive for sure.
This explains it later in the article:
“Premiums for options like these usually cost between $350 and $450 per share, both professors said. Assuming Paul paid a premium of $350 for each share, he would have paid $35,000 (100 times 350) for every call option he purchased. Because he purchased 50 call options, per the congressional disclosure form, he may have shelled out as much as $1.75 million (50 times $35,000) in premiums for the transaction as a whole.”
Some kid followed and bet on the same stocks as the Pelosis and made a bundle. Ther eis an app called “Capitol watch” or something like that that tracks what congresscritters are investing in too- mgith not bie a bad idea seeing how congress critters who make about $150,000 a year somehow leave congress with multimillions of $$
Pelosi will be able to buy Paulie bags of hammers.
Weird right?
Yep- amazing how they magically accumulate reams of $$- especially,when others are losing $$ like during the plancemic -
Actually part of the “tear” has been because every Tom, Dick and Harry has been sucking up NVidia GPU’s the mine the various “Coin” Blockchain. 2 years ago a friend who built a rig to do mining had an almost 1 year lead time on top of the line NVidia GPU cards...
Now they’re needed for AI! LOL...
Good luck mining Coin vs corps with 10’s if not 100’s of thousands of GPU’s and AI managing it all.
That’s some nice insider knowledge beyond the obvious supply and demand of 2 years ago...
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