Pelosi and Her Husband Purchased Tesla Options on December 22nd

Pelosi and her husband love taking long-term options positions.
On December 22nd, according to a Disclosure, Pelosi and her husband purchased long-term call options on Tesla, which enjoyed a phenomenal move in 2020.
The transaction, which was valued between $500,001 and $1,000,000, saw the Pelosi household purchase 25 $500 3/18/22 call options.
Tesla closed at $640.34 on December 22nd, 2020, which means that the per contract cost was likely in the range of $300-$330 per contract, as Tesla's options contain a very high amount of extrinsic value (time and volatility).
This means that the total transaction likely cost the Pelosi household between $750,000 and $825,000.
These long-term options, also known as LEAPS, will give the Pelosi household the right to exercise their contract anytime between now and March 18th, 2022, at the price of $500.
With Tesla currently trading at $846.64, the Pelosi's are up significantly on the trade already, as the options that they bought are currently trading for about $420 per contract, which means that they are already up approximately $250,000 in just a month.
There is expected to be a big push for continued electric vehicle adoption under the Biden Administration, so the Pelosi's clearly thought that purchasing Tesla was a good idea, even though the stock had already risen very sharply in 2020.
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Nancy Pelosi and her husband didn't stop there - they completed three other trades on the same day:
Purchase of 20,000 shares of AllianceBernstein Holding LP
Purchase of 100 AAPL $100 call options with an expiry of 1/21/22
Purchase of 100 DIS $100 call options with an expiry of 1/21/22
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Clearly Nancy Pelosi is bullish on the short-term prospects for the US economy and stock market.
Source: House.gov - Periodic Transaction Report for Nancy Pelosi
Filed under: General Knowledge