Continued Stock Tradings Despite Controversy
Pelosi, at the age of 83, has consistently pursued stock trading despite criticism. During her tenure as House Speaker, she faced backlash for resisting calls to pass legislation that would bar members of Congress and their spouses from buying and selling stock in companies under their regulation.
Nvidia, a Santa Clara, California-based company listed on the Nasdaq index, closed Friday at $488.30.
A call option grants the holder the right, but not the obligation, to buy a specific quantity of an underlying asset within a specified timeframe at a predetermined price. Justin Rush, a financial planner at Nemes Rush, a Michigan-based family wealth management firm, explained that call options can be advantageous in predicting the rise in the value of an asset and buying it at a predetermined lower cost.
The Pelosis’ Successful Stock Trading Ventures
The Pelosis have generated substantial profits through call options on blue-chip stocks, including Google, Salesforce, Roblox, and Disney. Last year, they announced the sale of 25,000 shares of Nvidia at an average price of $165.05 per share. This sale resulted in a total revenue of $4.125 million.
Potential Losses and Controversy
Despite their stock trading successes, the Pelosis have also faced setbacks. The couple purchased 50 call options of Nvidia stock with a strike price of $120 and an expiration date of December 20 next year. However, this particular trade resulted in a loss of $341,365, according to the financial news site Benzinga. At the time of the trade, Nvidia shares rose in anticipation of Congress voting on the CHIPS Act, legislation aimed at promoting domestic semiconductor manufacturing. Pelosi publicly supported the CHIPS Act, which benefitted Nvidia, a semiconductor manufacturer.
Potential Profits Left on the Table
If the Pelosis had held onto their 25,000 Nvidia shares, their stake would currently be valued at over $12.2 million, yielding a profit of more than $8 million.