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07/05/2024 |

Pelosi’s New Positioning

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Key Takeaways

Major trades in Broadcom and NVIDIA

In a recent series of noteworthy trades, Congresswoman Nancy Pelosi from California’s 11th congressional district took substantial positions in AVGO (Broadcom Inc.) and NVDA (NVIDIA Corporation)

On June 24, 2024, Pelosi purchased 20 ITM Broadcom call options with a strike price of $800 and an expiration date of June 20, 2025. The purchase of these short-dated options, which occurred on an ex-dividend date, came after shares of AVGO had reversed -14% off the heels of a strong earnings report on July 12th. The trade, which is valued between $1-5 million, is certainly working well for Pelosi, as the stock is currently up +8% since the time of purchase.

Just two days later, Pelosi purchased 10,000 shares of NVIDIA, another significant investment valued between $1-5 million. While NVDA‘s share price has been mostly flat since the time of purchase, it is currently trading 10% below its late June high.

Strategic Sell-Offs in Tesla and Visa

Pelosi’s trading activity wasn’t limited to new long positions. On the same day she acquired the Broadcom call options, she sold 2,500 shares of TSLA (Tesla), valued between $250,001 and $500,000. Unfortunately for her, the company announced positive growth in their delivery numbers just days later and the stock is currently trading 35% higher than it was when she sold. Ouch.

Additionally, on July 1, Pelosi sold 2,000 shares of V (Visa Inc.), with the transaction estimated to be worth between $500,001 and $1,000,000. Why she closed this position is unclear, but perhaps she’s trying to take advantage of seasonal strength. July is the strongest month of the year for V, with an 82% win rate which declines substantially over the subsequent summer months.