Nvidia Corporation NVDA shares hit all-time highs Monday, continuing the impressive multi-year run of going from a $1 trillion company to a company worth over $3 trillion.
Many Nvidia employees and investors have been rejoicing in the stock gains over the last year and one of the big winners is a member of Congress.
What Happened: Former House Speaker Nancy Pelosi and her husband, venture capitalist Paul Pelosi are among the investors who have been adding Nvidia stock and options to their investment portfolios over the last year.
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As a member of Congress, Nancy Pelosi has to disclose the trades made by herself and her husband. In a Dec. 23, 2023 disclosure, the former Speaker of the House reported a purchase made before the Christmas holiday.
The purchase was made on Nov. 22, 2023, for 50 call options in Nvidia, with a $120 strike price and an expiration date of Dec. 20, 2024.
The disclosure listed the purchase price range of $1 million to $5 million. Unusual Whales pinned the purchase to a price of $1.8 million.
Nvidia shares traded between $476.90 and $503.35 on Nov. 22, 2023, when the purchase was made. The call options would have been purchased for around $360 each.
Fast forward to today and the options have changed after Nvidia conducted a 10-for-1 split in June 2024.
The options contracts owned by the Pelosis are now 500 call options with a $12 strike price and an expiration date of Dec. 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 basis of $1.8 million, the Pelosis are now up $4.8 million on this trade from last November.
The options trade isn't the only one the Pelosis made over the last year. The former House Speaker also disclosed buying 10,000 NVDA shares on June 26, valued at $1 million to $5 million, and 10,000 NVDA shares on July 26, valued at $1 million to $5 million.
Here's a look at those two purchases 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 and up at least $430,000, depending on the timing of the purchases.
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Missed Profits?: While the Pelosis are now up over $5 million from their purchases of Nvidia stock and options over the last year, they could have been sitting on more profits if they hadn't sold shares back in July 2022.
The sale happened after a disclosure of buying Nvidia shares ahead of the CHIPS Act, set to benefit semiconductor stocks, drew scrutiny and increased attention.
In a filing, Pelosi reported selling 25,000 Nvidia shares at an average price point of $165.05. The total sale was valued at $4,126,250. The filing shows that the transaction was at 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 potential profits of $31,801,250 from their sale in July 2022.
Nancy Pelosi says she does not share information on congressional activities with her husband. Observers remain skeptical, given the questionable timing of her disclosed trades.
Pelosi’s annual salary falls between $174,000 and $197,000 as a senior member of Congress. When she served as Speaker of the House, her annual salary was $223,500.
An ETF to track the stock trading activity of Democrats in Congress, the Unusual Whales Subversive Democratic Trading ETF NANC, bears the Representative’s name in the stock ticker.
Increased calls to ban Congress members and their spouses from trading have also centered on Pelosi, a Democrat. One bill even uses her name as an acronym: the PELOSI Act.
NVDA Price Action: Nvidia shares closed at $143.71 on Monday, hitting new all-time highs. Nvidia stock is up 198% year-to-date in 2024.
This article was previously published by Benzinga and has been updated.
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