As the US stock market continues to climb since the beginning of this year - as of Wednesday, the S&P 500 index has rewritten its historical high record 33 times this year, the risk appetite sentiment in the US market has clearly been completely ignited. Amidst the recent overall market frenzy, former US House Speaker Nancy Pelosi also revealed on Tuesday that her husband, Paul Pelosi, conducted stock trading last month.
According to relevant documents, this "Capitol Hill Stock God" has been making a series of moves recently
According to the documents, the Pelosi family has had four recent buying and selling transactions, including the purchase of Broadcom's call options and NVIDIA stocks, and the sale of some Tesla and VISA stocks.
Purchase of Broadcom options and NVIDIA
In terms of buying, Paul Pelosi purchased 20 Broadcom call options with an exercise price of $800 and a maturity date of June 20, 2025 on June 24, with a trading value between $1 million and $5 million.
In addition, Pelosi purchased an additional 10000 shares of NVIDIA stock on June 26th. The scale of this transaction is similar to the purchase of Broadcom, with a value ranging from $1 million to $5 million.
It is obvious that in the current context of the booming AI wave, Paul Pelosi still seems to be quite optimistic about the future prospects of these two chip giants, who have continued to soar.
Prior to this purchase, Pelosi had previously had a record of buying Nvidia call options. We have previously reported that data from Unusual Whales, a US financial data platform, shows that as of the end of May alone, this couple had already earned nearly $4 million (approximately RMB 29 million) from the call options purchased by Nvidia in November last year. Since the end of May, Nvidia has accumulated an increase of over 11%.
In terms of Broadcom, although the Pelosi couple has not traded the stock or related options in recent years, this position building may also coincide with a good time to enter the market after a short-term correction. As shown in the figure below, after hitting a historic high on June 18th, Broadcom experienced a period of consecutive days of decline. But by the time Pelosi bought on June 24th, the stock had basically stabilized again and is now expected to hit high again.
According to Dow Jones market data, Broadcom's market value surpassed Lilly for the first time in over two years last month, becoming the eighth highest company in the United States by market value.
Selling Tesla and VISA
In terms of the targets sold in June, despite being hailed as the "God of Capitol Hill", Pelosi may have stumbled in Tesla's trading this time - the latest selling operation against Tesla should be a "meat cutting" behavior that suffered losses.
According to the documents, Pelosi sold 2500 shares of Tesla's stock on June 24th, with an estimated value between $250000 and $500000.
Looking at the historical trading situation in recent years, Pelosi's last purchase of Tesla dates back to March 17, 2022 (when she bought between $1-5 million), when Tesla received approximately $290. On June 24th of this sale, Tesla closed at $182.58, a decrease of approximately 47% during the period.
In fact, even if Pelosi sells a few days late, her losses will be greatly reduced. Due to higher than expected delivery data in the second quarter, Tesla's stock price has continued to soar in the past few trading days, closing at approximately $246.39 on Wednesday, a rebound of approximately 35% from the closing price on June 24th. It can be said that the timing of Pelosi's sell-off this time is very bad
In another selling operation, Pelosi partially sold her shares in Visa on July 1st, involving 2000 shares with an estimated value between $500000 and $1 million.
This transaction may have helped Pelosi make a lot of money. It is reported that Pelosi purchased these stocks for less than $30 as early as 2011, while Visa closed at $263.24 on July 1st, nearly eight times higher than its buying price! At present, the Visa shares sold by Pelosi are still listed as partial sales, which means she may still hold some shares of this credit card company.