Pelosi and Her Husband Purchased Tesla Options on December 22nd
As we've detailed on this site before, Speaker of the House Nancy Pelosi and her husband are significantly invested in the stock market. 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.
-
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
-
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
