Former US Speaker of the House Pelosi, also known as the "stock god of Capitol Hill," has recently made frequent moves. According to records of trades made by congress members, Pelosi has bought call options of Broadcom and 10,000 shares of Nvidia while also selling some Tesla and Visa shares.

Buy Nvidia smartly and make a fortune

According to the records, on June 24th, Pelosi bought 20 call options of Broadcom with a strike price of $800 and an expiration date of June 20, 2025. The total value of this trade is estimated to be between $1,000,001 and $5,000,000. Two days later on the 26th, Pelosi made another significant investment by buying 10,000 shares of Nvidia. This trade is similar to the Broadcom purchase and is valued between $1,000,001 and $5,000,000.

Both Nvidia and Broadcom have experienced a sharp rise in stock price this year, up 154% and 52%, respectively, largely due to the surge in spending on artificial intelligence-related technology.

Of note is Pelosi's purchase of Nvidia's stock, because she has a long and remarkable history of trading with Nvidia. At the end of 2023, she engaged in a very successful options trading with the company. As early as the beginning of 2024, according to reports, Pelosi's investment income from Nvidia had already exceeded her annual salary as a congress member.

Analysis shows that if Nvidia continues to perform well in the second half of the year, even if the increase is only half of that in the first half of the year, Pelosi's new purchase of 10,000 shares will bring her about $1 million in profits, which is more than five times her annual salary.

As for the call option of Broadcom, with a strike price of $800, it also has great potential for upward movement, because Wall Street generally believes that the company's stock will rise by at least 11% in the next 12 months.

Sell Tesla and suffer losses while still making big gains with Visa

However, Pelosi's trading activity is not limited to buying stocks. On the same day she bought the Broadcom call options, Pelosi sold 2,500 shares of Tesla's stock, worth an estimated $250,001 to $500,000. Finally, on July 1st, Pelosi partially sold her Visa stocks, involving 2,000 shares, worth an estimated $500,001 to $1,000,000.

Analysis shows that Pelosi's sale of Tesla stocks seems to be untimely. The Tesla stocks sold on June 24th are likely the ones she purchased in March 2022. Considering that Tesla's stock price fell from around $340 to $182 at that time, Pelosi's Tesla stock lost about $160 per share. Overall, the loss from this trade is about $400,000. Moreover, just after she sold the shares, Tesla has experienced a wave of consecutive increases, and the stock price has returned to above $240, with a difference of almost $60 from the day of sale and a total difference of about $150,000.

Selling Visa's stocks, on the other hand, proved to be very profitable, because Visa's stock price was about $270 on Wednesday, and according to reports, Pelosi bought these stocks for less than $30 in 2011. The Visa shares sold were partially sold, which means that the couple still holds shares in the credit card company. Additionally, Pelosi and her husband participated in Visa's IPO and bought 5,000 shares at the IPO price of $44 in 2008. This transaction raised suspicions at the time because the company's headquarters are in Pelosi's home district.

To avoid media attention, Pelosi usually reports her trades before the US Independence Day holiday when the US stock market is closed. X-account Congresstrading, which tracks congress members' trades, wrote that Pelosi's choice to report before the holiday to avoid media attention actually made her more predictable.

Pelosi's trading is important because her husband Paul Pelosi is a venture capitalist and regularly engages in large purchases of stocks and options. Although Pelosi has repeatedly stated that she has not shared stock tips or insider information with her husband, the timing of several trades has raised questions among investors. These trades provide a glimpse into Pelosi's investment strategy and show her confidence in the technology industry. It remains to be seen how these trades will affect her financial investment portfolio in the long run.

Analysis suggests that Pelosi's trades are important because her husband Paul Pelosi is a venture capitalist who frequently makes large stock and options purchases. Although Pelosi has repeatedly stated that she has not shared stock tips or insider information with her husband, the timing of several trades has prompted questions from investors. These trades offer a glimpse into Pelosi's investment strategy and show her confidence in the tech industry. The long-term impact of these trades on her financial investment portfolio remains to be seen.

Given retail investors' interest in congressional trading, particularly in regards to Pelosi, the "Congress Hill God of Stocks", Wall Street has launched several related theme ETFs, including the Unusual Whales Subversive Republican Trading ETF and Democratic Trading ETF, which respectively track the trading activities of Republican and Democratic Members of Congress.

In addition, Tuttle Capital has applied to the Securities and Exchange Commission (SEC) to launch a Capitol Hill Trading ETF, which will primarily invest in "publicly disclosed reports of company stocks held by current U.S. Members of Congress and/or their spouses, as required by the STOCK Act." This ETF is expected to launch in August 2024. As for its operation, it will consider the qualifications of each Member of Congress, their participation in Congressional committees, and their record of generating excess returns to establish an initial investment portfolio. Subsequently, when a U.S. Member of Congress reports buying or selling a stock, this ETF will buy or sell the corresponding stock.

This ETF is expected to launch in August 2024. As for its operation, it will consider the qualifications of each Member of Congress, their participation in Congressional committees, and their record of generating excess returns to establish an initial investment portfolio. Subsequently, when a U.S. Member of Congress reports buying or selling a stock, this ETF will buy or sell the corresponding stock.

Edited by Jeffrey