Nancy Pelosi Made Millions on NVIDIA Options – Here's Her Next Move
In the high-stakes world of congressional stock trading, few names have commanded as much attention as Nancy Pelosi and her husband Paul's financial maneuvers. Recently, disclosures from the former Speaker of the House revealed a continued focus on the tech sector, with substantial option trades in companies like $NVIDIA (NVDA.US)$ and $Broadcom (AVGO.US)$ .
The latest filings show Nancy Pelosi acquiring 10,000 shares of Nvidia, with a reported value between $1 million and $5 million, a significant position in the semiconductor powerhouse. Concurrently, she also purchased 20 call options on Broadcom with a striking price of $800, expiring in June 2025, reflecting a similar valuation.
Meanwhile, Pelosi exited positions in $Tesla (TSLA.US)$ and $Visa (V.US)$, offloading roughly 2,500 and 2,000 shares, respectively, with plenty of profit.
A Year of Profitable Decisions
Pelosi's trading decisions have drawn scrutiny and admiration in equal measure. On November 22, 2023, the Pelosi household invested in Nvidia call options. Since then, Nvidia's stock has surged by 156%, translating into a gain exceeding $4 million—a return that dwarfs the congresswoman's annual salary.
Further expanding her portfolio, Nancy Pelosi disclosed on February 23rd a significant investment in call options for $Palo Alto Networks (PANW.US)$, worth approximately $1.25 million.
Buying deep-in-the-money call options, as the Pelosis have done, offers a strategic alternative to direct stock purchases by providing a very high delta, which closely mimics the performance of the underlying stock while allowing for greater leverage. However, these options have time value, and if the stock price moves against, options can expire worthless.
The Rise of Congress-Following ETFs
Amid the revelations of individual trading disclosures, a notable trend has emerged: the creation of partisan ETFs that mirror the investment patterns of U.S. politicians. According to Steve Johnson of FT.com, these ETFs, launched by Subversive Capital Advisor, shed light on the differing strategies of Democrat and Republican politicians. Since their inception in February of the previous year, one ETF that follows Democratic trading patterns has reportedly outperformed the $S&P 500 Index (.SPX.US)$ with a 37.5% return. Meanwhile, its counterpart tracking Republican trades, despite a more conservative 25.4% gain, has exceeded the Dow Jones Industrial Average's performance when considering risk-adjusted metrics.
The holdings in the Democrat-aligned ETF include notable companies such as cybersecurity firm CrowdStrike Holdings and safety systems provider API Group, both absent from the S&P 500 and entirely missing from the 487-stock portfolio of the Republican-aligned ETF. In contrast, the Republican ETF's prime investment is in energy giant Shell, which is not included in the Democrat-aligned ETF's 734 stocks.
Bryan Armour from Morningstar has highlighted the distinct differences in the investment approaches of these politically aligned ETFs, drawing attention to the disparities in energy and other sectors. Despite the apparent divide, Armour has voiced his doubts about the logic of investment choices being influenced by political allegiance.
Meanwhile, Christian Cooper, who oversees both ETFs, interprets these divergent strategies as reflective of the parties' expectations for the upcoming presidential election. The Democrat-aligned ETF's tech-centric and optimistic portfolio appears to be betting on a Biden reelection and the possibility of interest rate cuts. In contrast, the Republican-aligned ETF's focus on energy and physical assets seems to be positioning for a Trump win and the anticipated tax advantages that may follow.
Source: Bloomberg, MarketWatch, Ft.com, X.com
Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Opening new options positions close to or on their expiration date comes with substantial risk of losses for reasons that include potential volatility of the underlying security and limited time to expiration. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request.This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.
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Mariusz : Crooked Nancy at it again ! Nothing to see here lol
103719566⭐ :
Flowerhill : I will create Nancy Peloci ETF
Clement Lemons : ok
Kenny LTL : Ok
Sikander KHAN : Insider infromtion, but not always right for Ms. Nancy. I am sure for this time especally Broadcom 'AVGO' June 2025 call option will go worng for her.
Gordon Edgett : I am sure they are all legit trades
Damion online : what is the ticker for the ETFs
Tyroneious : a pump and dump in the making. buy puts
The Golden goose : why do we always make things political? she made some good investments, are we saying she knew NVDA was going to go through the roof, or dumping TSLA after a big run up after its been in a run for over a year cuz she has inside info? maybe Cathie of Ark investments also have inside info, cuz she just dumped TSLA again but been pumping it saying it will be a $3k price by 2030.
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