Stench of corruption: Nancy Pelosi buys Big Tech call options By Monica Showalter for American Thinker
Nancy Pelosi has grown very rich while in public office. She’s amassed a reported $120 million fortune on a $223,500 annual congressional salary.
And like Hillary Clinton, she’s an expert stock picker. In her case, she trades a lot on stocks of companies she writes the laws for, and somehow, it always seems to go her way.
Last year, her pick was Tesla. This year? All about Big Tech.
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She’s laying the money down. According to Mediaite:
House Speaker Nancy Pelosi (D-CA) placed up to $3 million in bets this month on a handful of companies to succeed in 2022 — including Google, SalesForce, and Disney.
Pelosi and her husband, Paul Pelosi, put the money on call options in the four-day period from Dec. 17-21, according to disclosures made public on Thursday by the House Clerk. Their largest investment was for call options for SalesForce, valued at $500,000 to $1.250 million. The options came with a strike price of $210 on Jan. 20, 2023, compared to $65 as of Dec. 29. Google ranked as their second-highest investment, with $500,000-$1 million for calls at a strike price of $2,000 on Sept. 16, 2022, compared to $109 on Thursday.
Other investments included $250,000-$500,000 on call options for Micron Technology, at a strike price of $50 on Sept. 16, 2022; the same amount for calls on Roblox, at a price of $100 on Jan. 20, 2023; and $100,000-$250,000 for calls on Disney at $130 on Sept. 16, 2022.
The disclosures, which members of Congress are required to file, reveal monetary ranges for their investments, but not exact figures.
The Pelosis, both 81, have developed a reputation for prophetic ability when it comes to picking stocks. Their trades last made headlines in January, when they purchased between $500,000 and $1 million in call options in Tesla at a strike price of $500. That stock hit a new historical high last month in excess of $1,200.
To explain those options — what she’s betting is that a company like Google’s stock price is going to rise and be at a certain level. When she buys an option, she’s buying a derivative that gives her the right, but not obligation, to purchase that stock at a certain “strike price,” meaning, she thinks everyone else is going to have to buy it at a higher price. That’s where the money is to be made. In the case of Google, she’s betting the price of a share of that company will be well above what it is now (currently at around $2,900 today) by the strike price date of Sept. 16, 2022. But she will have the right to buy it cheaper, which should be very profitable should she decide to sell it afterwards. For instance, and to take a hypothetical example, if the share price of Google goes up to $3,000, and she exercises her call option to buy her share at $2,000, well, she can then sell the share at a $1,000 profit, which is a nice piece of cake. The price of the call option is not the same as the price of the stock since it’s a derivative of the stock. According to Investopedia:
