Current Speaker of the U.S. House of Representatives, Nancy Pelosi and her husband Paul Pelosi have bought options worth millions in technology stocks, according to the New York Post. These include Alphabet Class A Inc. (GOOGL), The Walt Disney Co. (DIS), Roblox Corp. (RBLX), salesforce.com, inc. (CRM), and Micron Technology, Inc. (MU).
In the year 2021, GOOGL gained 67.8%, DIS lost 12.8%, RBLX gained 48.4%. Meanwhile, CRM is up 15.4% and MU is up 25.8% over the past year.
Owning Individual Stocks
On December 16, Nancy Pelosi spoke in favor of Congress members who owned individual stocks. Stating that the U.S. is a “free-market economy” she commented that lawmakers should be allowed to own individual stocks. The STOCK Act of 2012 requires that members of Congress disclose all trades.
However, critics have often opined that lawmakers should be banned from trading as they have certain insider knowledge and information, which could help them profit from their trades.
Following her liberal stance, financial documents disclosed on Thursday showed that the Pelosis had snapped up large call options worth millions for stocks in Google, Walt Disney, Roblox as well as CRM. These purchases were carried out between December 17 and December 21, a day after her liberal statements caught the country’s attention.
The congresswoman’s deputy chief of staff stated that “The Speaker does not own any stocks,” and has “no prior knowledge or subsequent involvement in any transactions”. As per the filings, all stocks are owned by her husband, Paul Pelosi who operates a Financial Leasing Services firm, which is involved in real estate and venture capital investments.
Call Options Worth Millions of Dollars
Pelosi’s December trades include call options of different companies, with a special focus on the tech sector, which reflects the family’s bullish outlook towards the sector. All the options are expected to expire in late 2022 and early 2023.
The family’s Google and Salesforce call options are worth between $500,000 and $1 million each. Roblox call options are valued between $100,000 and $250,000.
Meanwhile, the couple bought semiconductor maker MU call options worth between $250,000 and $500,000, and the call options from Disney are valued between $100,000 and $250,000.