Best Trader In Congress Wagered $20M In Bets On A Major Tech Company – And He Loves Options

Members of Congress are free to buy and sell stocks and options as long as they report the transactions promptly.

Many questionable trades come with potential conflicts of interest. Senators have even called for a ban on elected officials being able to trade stocks.

News of a large transaction by a member of Congress has raised potential red flags again.

What Happened: Rep. Josh Gottheimer (D-N.J.) is one of the most active members of Congress when it comes to stock transactions. In 2022, he had one of the best trades of the year with a 140% gain on sales owned of ChemoCentryx, after the company was acquired by Amgen, Inc.

Recently, Gottheimer disclosed numerous stock transactions on Dec. 8, with the trades happening during November.

Among the trades were several large purchases and sales of options of Microsoft Corporation MSFT, one of the largest companies in the world.

The transactions were:

• Bought $5 million to $25 million worth of MSFT calls, strike price $160, expiration June 21, 2024
• Bought $1 million to $5 million worth of MSFT calls, strike price $170, expiration June 21, 2024
• Sold $5 million to $25 million worth of MSFT calls, strike price $165, expiration Jan. 17, 2025
• Sold $1 million to $5 million worth of MSFT calls, strike price $170, expiration Jan. 17, 2025

"Holy sh**. Representative Josh Gottheimer is trading millions of dollars of options in Microsoft. He just disclosed that he purchased anywhere from $5,000,001 to $25,000,000 in deep ITM (in-the-money) MSFT Options with a strike of $160, expiring in June 21, 2024," popular Congress trading tracker Unusual Whales tweeted.

Unusual Whales said the Congressman likely paid $5,086,000 for the $5 million to $25 million call purchase in question and it the trade was made when Congress was in session.

Gottheimer's team has stated the Congressman does not complete his own trading and a third-party handles the activity for him.

Gottheimer's large Microsoft transaction comes after he promised to put his money in a blind trust back in 2022. According to Quiver Quant, he has failed to do so since.

"We estimate that Gottheimer has gained over $20M of wealth while in office," Quiver Quant said.

Related Link: Members Of Congress Buy Energy, Defense Stocks Prior To Russian Invasion Of Ukraine: Who They Are, What They Bought

Why It's Important: Gottheimer was previously employed by Microsoft. He held titles like General Manager, Advertising and Strategy General Manager, Advertising and Strategy from Oct. 2012 through Oct. 2015 according to his LinkedIn.

Quiver Quant noted that the trades could be related to grants he received while employed with Microsoft.

Gottheimer currently serves on the Committee on Financial Services and Permanent Select Committee on Intelligence.

Earlier this year, Benzinga flagged questionable trades in bank stocks made by Gottheimer including SVB Financial, owner of Silicon Valley Bank. The Congressman sold shares of SVB Financial one day before the bank was taken over by the FDIC.

While Gottheimer lost money on the trade, the transaction's timing raised question, as did the Congressman's position on a major financial committee.

The Congress member has also been mentioned as one of several elected officials who owned stakes in Russian companies in 2022 despite economic sanctions. A report from Business Insider highlighted stakes in Lukoil and Yandex owned by Gottheimer at the time.

Gottheimer also violated the STOCK Act several times, failing to disclose his transactions in the required time.

Among the other trades disclosed by Gottheimer on Dec. 8 include the sale of shares of Monster Beverage Corporation MNST and the purchase of Celsius Holdings CELH, a potential trade idea among the energy drink rivals.

Read Next: Senator’s Perfect Timing? Russian War-Linked Biotech Buy Raises Eyebrows Amid Trading Ban Debate

Image: Shutterstock