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Nvidia Corporation Shares (NASDAQ: NVDA ) hit new highs on Monday, continuing a multi-year run from a $1 trillion company to a company valued at more than $3 trillion.
Many Nvidia employees and investors have rejoiced in the stock’s gains over the past year and one of the big winners is a member of Congress.
What happened: Former Speaker of the House of Representatives Nancy Pelosi and her husband, a venture capitalist Paul Pelosi is one investor who has added Nvidia stock and options to his investment portfolio in the past year.
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As a member of Congress, Nancy Pelosi must disclose the trades that she and her husband made. In a disclosure dated December 23, 2023, the former Speaker of the House of Representatives reported the purchase made before the Christmas holidays.
The purchase was made on November 22, 2023, for 50 call options on Nvidia, with a strike price of $120 and an expiration date of December 20, 2024.
The disclosure lists purchase prices from $1 million to $5 million. The unusual whale bought it for $1.8 million.
Nvidia shares traded between $476.90 and $503.35 on November 22, 2023, when the purchase was made. Phone options will cost 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 contract owned by Pelosis is currently 500 call options with a strike price of $12 and an expiration date of December 20, 2024.
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On Monday, this $12 call option traded at $132.05, valuing Pelosis’ position at $6,602,500. Based on a cost base of about $1.8 million, Pelosis is now up $4.8 million on this trade from last November.
Options trading is not the only option Pelosis was created over the last year. The former Speaker of the House also announced the purchase of 10,000 shares of NVDA on June 26, worth $1 million to $5 million, and 10,000 shares of NVDA on July 26, worth $1 million to $5 million.
Here’s a look at the two buys based on 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
Both purchases are currently valued at $2.87 million and at least $430,000, depending on the time of purchase.
Do You Know?
Missed benefits?: While Pelosis now has more than $5 million from buying Nvidia stock and options over the past year, he could have made even more if he didn’t sell the stock in July 2022.
The sale comes after the disclosure of Nvidia’s stock purchase ahead of the CHIPS Act, set to benefit semiconductor stocks, attracted more and more attention.
In the filing, Pelosi reported selling 25,000 Nvidia shares at an average price of $165.05. Total sales were $4,126,250. The filing shows that the transaction resulted in a loss of $341,365.
The current 25,000 shares will become 250,000 shares based on the stock split from earlier this year. Based on Nvidia’s $143.71 price on Tuesday, 250,000 shares would be worth $35,927,500. This means that the Pelosis did not realize the potential profit of $31,801,250 from the sale in July 2022.
Nancy Pelosi says she does not share information about congressional activities with her husband. Observers remain skeptical, given the questionable timing of the trades disclosed.
Pelosi’s annual salary falls between $174,000 and $197,000 as a senior member of Congress. When he served as Speaker of the House, his annual salary was $223,500.
ETF to track stock trading activity of Democrats in Congressat Unusual Whales Subversive Democratic Trading ETF (BATS: NANC), carry the name of the Representative on the stock ticker.
Increasing calls to ban members of Congress and their spouses from trading have also focused on Pelosi, a Democrat. One bill even uses his name as an acronym: UU PELOSI.
NVDA Price Action: Nvidia shares closed at $143.71 on Friday, hitting a new all-time high. Nvidia shares are up 198% year over year in 2024.
This article was previously published by Benzinga and has been updated.
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This article Nvidia Stock Hits All-Time High: Here’s How Much Nancy Pelosi’s 500 Call Options Are Worth Today originally appeared on Benzinga.com
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