The Pelosis' bet on a Bay Area tech company could turn a staggering profit

SF Gate ^ | February 26, 2024 | By Alec Regimbal

[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.

[Faith65]

Gotta look that up again. It was interesting...lol