Pelosi Continues To Raise Eyebrows With Her Transactions

A few weeks ago, Speaker of the House Nancy Pelosi released a "Periodic Transaction Report" that detailed a number of very large stock options purchases.

In the past, we've detailed a number of very large stock options purchases that Pelosi and her husband have made.

The Speaker of the House and her husband are very well off, and they have done very well in the market in the past.

When asked about it, Pelosi will usually just shrug her shoulders and say that her husband does these transactions.

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Pelosi's most recent round of transactions raised more eyebrows, mainly due to their timing.

Here are the four transactions detailed in Pelosi's most recent disclosure:

1. Exercised 40 Call Options in GOOGL at $1,200

2. Purchased 20 Call Options in AMZN with a strike price of $3,000 and an expiration date of June 17th, 2022.

3. Purchased 50 Call Options in AAPL with a strike price of $100 and an expiration date of June 17th, 2022.

4. Purchased 50 Call Options in NVDA with a strike price of $400 and an expiration date of June 17th, 2022.

These were all large transactions - the NVDA call purchase, for instance, cost a minimum of $1,000,001, and as much as $5 million.

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The transaction that really raised eyebrows was the AMZN call buy, as the stock rallied on news that the Pentagon was scrapping the $10 billion JEDI contract that had been awarded to Microsoft during President Trump's term.

Amazon was taking the government to court over the contract, as they felt that they were being punished due to President Trump's public dislike of Jeff Bezos.

When the Pentagon scrapped the contract, this cause Amazon's stock to surge.

Shares of Amazon are up roughly $500 per share over the past month or so, which means that Pelosi and her husband have had another massive score.

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This leads to the obvious question.

Should the Speaker of the House, or any member of Congress for that matter, be permitted to purchase such large amounts of options? Should they be able to buy stocks at all?

Pelosi is not being accused of anything, but the optics of the purchase stink. Pelosi and her husband purchased a large amount of Amazon options mere weeks before the company benefitted from the Pentagon's scrapping of Microsoft's big contract win, and the Pelosi's will likely make a mint as a result.

Pelosi will merely shrug her shoulders and say that her husband executed the purchases, but should it be allowed in the first place?

Source: Nancy Pelosi Disclosure

Filed under: General Knowledge