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Nvidia company (NASDAQ:NVDA) shares hit an all-time high on Monday, continuing an impressive multi-year streak of going from a $1 trillion company to a company valued at more than $3 trillion.
Many Nvidia employees and investors have rejoiced in the stock gains over the past year, and one of the big winners is a member of Congress.
What happened: Former Speaker of the House of Representatives Nancy Pelosi and her husband, a venture capitalist Paul Pelosi are among the investors who added Nvidia stock and options to their investment portfolios in the past year.
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As a congresswoman, Nancy Pelosi must make her and her husband’s transactions public. In a disclosure dated December 23, 2023, the former Speaker of the House of Representatives reported a purchase made before the Christmas holidays.
The purchase took place on November 22, 2023 for 50 call options in Nvidia, with a strike price of $120 and an expiration date of December 20, 2024.
The disclosure stated a purchase price range of $1 million to $5 million. Unusual Whales priced the purchase at $1.8 million.
Nvidia shares were trading between $476.90 and $503.35 on November 22, 2023, when the purchase was made. The call options are said to have been purchased for approximately $360 each.
Fast forward to today and the options have changed after Nvidia executed a 10-for-1 split in June 2024.
The options contracts owned by the Pelosis are now 500 call options with a strike price of $12 and an expiration date of December 20, 2024.
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On Monday, these $12 call options traded at $132.05, valuing the Pelosis’ position at $6,602,500. Based on the estimated cost base of $1.8 million, the Pelosis are now up $4.8 million from last November.
Options trading is not alone the Pelosis created over the past year. The former Speaker of the House of Representatives also disclosed that he purchased 10,000 shares of NVDA, worth $1 million to $5 million, on June 26 and 10,000 shares of NVDA on July 26. valued at $1 million to $5 million.
Here’s a look at these two buys based on the intraday highs for Nvidia stock.
June 26: 10,000 shares, $128.12 per share, purchase price $1,281,200, now worth $1,437,100
July 26: 10,000 shares, $116.20 per share, purchase price $1,162,000, now worth $1,437,100
The two purchases are now worth $2.87 million, with a value of at least $430,000 depending on the timing of the purchases.
Missed profit?: Although the Pelosis have now gained more than $5 million from their purchases of Nvidia stock and options over the past year, they could have made more profits if they had not sold shares in July 2022.
The sale came after the revelation of buying Nvidia stock ahead of the CHIPS Act, which would benefit semiconductor stocks, and attracted and increased attention.
In a filing, Pelosi reported selling 25,000 Nvidia shares at an average price of $165.05. Total sales were valued at $4,126,250. The filing shows the transaction resulted in a loss of $341,365.
The 25,000 shares would now be 250,000 shares, based on the stock split from earlier this year. Based on a price of $143.71 for Nvidia shares on Tuesday, the 250,000 shares would be worth $35,927,500. This means the Pelosis missed out on a potential profit of $31,801,250 from their July 2022 sale.
Nancy Pelosi says she doesn’t share information about congressional activities with her husband. Observers remain skeptical, given the questionable timing of her publicly disclosed transactions.
Pelosi’s annual salary is between $174,000 and $197,000 as a senior member of Congress. When she was Speaker of the House of Representatives, her annual salary was $223,500.
An ETF to track the stock trading activities of Democrats in Congressthe Uncommon Whales Subversive Democratic Trading ETF (BATS:NANC), bears the representative’s name in the stock price.
Growing calls to ban members of Congress and their spouses from trading also targeted Pelosi, a Democrat. One bill even uses its name as an acronym: the PELOSI Act.
NVDA Price Promotion: Nvidia shares closed Monday at $143.71, hitting new all-time highs. Nvidia stock is up 198% this year through 2024.
This article was previously published by Benzinga and has been updated.
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This article Nvidia Stock Hits Record Highs: Here’s How Much Nancy Pelosi’s 500 Call Options Are Worth Today originally appeared on Benzinga.com
