U.S. Rep. Nancy Pelosi (D-CA) reported a transaction for call options in $NVIDIA (NVDA.US)$ in December.
What Happened: The transaction, which took place on Nov. 22, was for 50 call options with a strike price of $120 and an expiration date of Dec. 20, 2024.
The filing listed a transaction price of $1 million to $5 million. Unusual Whales pinned the actual price to around $1.8 million.
Nvidia shares traded between $476.90 and $503.35 on the day of purchase.
Based on today's price, the Nvidia stake is now worth more than $3 million and has made a profit of over $1 million for Pelosi and her husband, venture capitalist Paul Pelosi.
The profit is significantly higher than the average Representative annual salary of $174,000. While serving as Speaker of the House, Pelosi made $223,500 annually.
Nvidia joined the $1 trillion market capitalization club in 2023 and was one of the best-performing stocks of the year. Strong third-quarter financial results in November helped boost shares of the semiconductor and lead to higher price targets from analysts.
In January 2024, Nvidia was one of several technology companies to partner with the U.S. government on an artificial intelligence research project.
Why It's Important: Pelosi is often scrutinized for the timing of her stock market transactions.
The Speaker Emerita insists that she does not share information on government contracts and initiatives with her husband before making stock and options trades.
And yet, Pelosi disclosed buying Nvidia shares before the government passed the CHIPS Act in July 2022. Recall how she traveled to Taiwan in support of semiconductor spending by the U.S. government.
Pelosi previously disclosed selling shares of Nvidia in July 2022 after her portfolio position drew increased attention.
In a filing, Pelosi reported selling 25,000 Nvidia shares at an average price point of $165.05. The filing also reported that the transaction was done at a loss of $341,365.
Based on a price of $666.71 for Nvidia shares today, the 25,000 shares would be worth $16,667,750. This means the Pelosi's missed out on potential profits of $12,541,500 from their Nvidia sale that happened in July 2022.
Increased calls to ban Congress members and their spouses from trading have also centered on Pelosi, with one bill using her name as an acronym: the PELOSI Act.