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Nancy Pelosi's husband bought up to $3.5 million worth of call options.
The bullish bets on Disney were placed by Paul Pelosi.
Pelosi's relationship with the Speaker of the House has caused a lot of attention to his trades.
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According to a financial disclosure form filed last week, Paul Pelosi, the investment manager and the husband of House Speaker Nancy Pelosi, purchased up to $3.5 million worth of call options in mega-cap stocks late last year.
He bought up to 1.5 million call options in Salesforce on December 20. He bought 130 call options with a strike price of $210 and an expired date of January 20, 2023.
If the options are executed, Pelosi will have the right to purchase 13,000 shares at a price of $210 if the shares stay above the $210 level. In Wednesday's trading session, the stock price ofSalesforce was down.
Additional purchases include 50 call options in Disney, 100 call options in Roblox, 100 call options in Micron Technology, and 10 call options in Alphabet.
Pelosi has leverage to the upside moves in the mega-cap stocks because of the long-dated in-the-money call options. The trades could be a bet on a continued low interest rate regime or on the fundamental outlook of the companies. The tech stocks that did well during the COVID-19 epidemic have been hurt by a recent spike in interest rates.
Pelosi has made purchases in tech giants before. Pelosi bought up to $1 million worth of call options in Amazon and up to $250,000 in call options on Apple in the middle of the 21st century.
The success of stock trades made by Congress members and their families is often replicated by investors. CongressTrading.com has built a community on investors focused on discussing lawmakers' stock trades.
Pelosi's latest trades came just days after she rejected the idea of banning Congress members from trading stocks, following an Insider investigation that found dozens of federal lawmakers and at least 182 top congressional staffers are violating a federal conflict-of-interest law.
We are a free-market economy. She said that they should be able to participate.
Business Insider has an original article.
