Former Speaker of the U.S. House of Representatives Nancy Pelosi (Nancy Pelosi), who visited Taiwan in 2022, in addition to her outstanding performance in politics, she and her husband Paul Pelosi are also considered by many to be savvy investors. According to the Nancy Pelosi Stock Tracker 7/1, Pelosi's portfolio hit an all-time high, rising 39% in the first half of the year, adding $23 million in profits in the first half of the year alone, equivalent to 130 years of her salary.

Pelosi's options strategy

According to tracking by Autopilot, the Pelosi couple's performance last year was 45%, and the top five current portfolios are Huida, Apple, Microsoft, Broadcom and Google.

In addition to buying current stocks, Pelosi is also good at using options for leverage operations. Let’s take his recent purchase of Broadcom as an example:

Pelosi declared an option to buy Broadcom (stock code: AVGO) on June 24, which consisted of 20 deep in-the-money calls with an execution price of 800 (that is, the execution price was far lower than the then-current stock price of approximately US$1,600). Expiration date is June 2025. The declared transaction amount is US$1 million to US$5 million.

According to Nasdaq 7/10 data, the current option price under the same conditions is US$947, and the transaction cost is US$1.89 million. However, because Broadcom’s stock price on 6/24 is lower than that on 7/10, its transaction cost should be lower. at $1.89 million.

The main feature of the investment strategy of buying deep in-the-money options is to use the high leverage effect of the options to obtain high returns, and as long as the premium is paid, the purpose of participating in the market can be achieved.

The estimated cost of a transaction like this is less than $1.89 million, but if you wanted to buy 2,000 shares of Broadcom stock on the same day, it would cost $3.23 million based on that day's closing price of $1,616.

Pelosi and Huida (NVDA)

Pelosi’s most high-profile transaction recently is Nvidia, which has been riding on the momentum of AI!

On November 22, 2023, Pelosi purchased 50 Nvidia options with an execution price of US$120 (the document content indicates that the transaction amount is between US$1 million and US$5 million), and the expiration date is 2024 December 20th. Huida's stock price was about $500 at the time, and it had not yet undergone a 10-for-10 stock split.

Nvidia shares have soared nearly 160% since Pelosi purchased the 50 calls, with shares now trading around $130 post-split. If those options were exercised at a split-adjusted strike price of $12 (reflecting the company's 10-for-1 stock split), she could purchase 50,000 shares (50 options times 100 shares each times the split-adjusted 10 shares).

Let’s give a rough estimate of its profits:

  • Option purchase cost: 1 million to 5 million

  • If the option purchase cost is executed: 12 *50,000=600,000

  • Current value of Huida: 130*50,000=6.5 million

Unrealized profit US$900,000~4.9 million

On June 24, 2024 (that day's closing price of $118.11), Pelosi purchased another 10,000 shares of Huida stock, with a declared value between $1 million and $5 million. It seems that Pelosi is still extremely optimistic about the future development of AI!

Pelosi vs. Tesla (TSLA)

However, not every investment made by Pelosi was profitable. According to unusualwhales.com, as early as December 22, 2020, Pelosi purchased 25 Tesla (TSLA) call options with a strike price of $500 and an expiration date of March 18, 2022 (document The content indicates that the transaction amount is 500,000 to 1 million).

But what sparked controversy was that the deal occurred a month after Biden was elected president. Shortly after Biden took office, he began discussing electricity legislation, which eventually passed later that year, including the Bipartisan Infrastructure Act and an executive order to make the federal government net carbon neutral by 2050.

The stock has been on a tear, rising 75% at its peak. On March 17, 2022, she eventually exercised her call option and purchased 2,500 shares at a strike price of $500, which occurred before Tesla's stock split (Tesla's stock split in August 2022, 1 share into 3 shares), which also means that Pelosi owns 7,500 shares of Tesla stock after the split.

On December 20, 2022, she sold 5,000 shares of Tesla stock (average cost $140.38).

On June 24, 2024, another 2,500 shares of Tesla stock were sold (the closing price that day was 182.58).

Let’s give a rough estimate of its profits:

  • Option purchase cost: 500,000 to 1 million

  • Exercising option purchase cost: 500*2,500=1.25 million

  • Sell ​​5,000 shares on December 20, 2022: 140.38*5,000=702,000

  • Sold 2,500 shares on June 24, 2024: 182.58*2,500=456,000

Losses ranged from US$592,000 to US$1.092 million (due to uncertainty in option purchase costs)

However, Tesla has continued to soar recently. If Pelosi had left it alone for a few more weeks, it should have turned a loss into a profit!

(Tesla surges in alarm, is TSLA the most undervalued AI stock or meme stock on the market?)

Pelosi vs. Cathie Wood

Interestingly, the Pelosi couple’s investment in Tesla and Huida is exactly the opposite of female stock god Cathie Wood. Ark’s flagship fund ARK Innovation ETF liquidated its shares in Huida in January last year, and Huida has since passed The price rose from US$120 to US$1,200, completely missing the opportunity of this surge, and was also questioned by investors. Wood, on the other hand, has never given up on Tesla. When the stock price fell last year, he continued to increase his investment, even placing an order for $2,600.

(Ark’s order for Tesla is expected to be $2,600 in 2029, Musk: It’s challenging but achievable!)

However, judging from the results, both have their own strengths. There is no perfect investment. If you can maintain your own investment philosophy and strategy in the market, earn more and lose less, and maintain a high winning rate, you can gain gains when the market trend comes out. Excellent pay.

This article Pelosi, the female stock market goddess in the political arena, earned a hundred years of salary by investing in half a year. What are her investment targets and strategies? First appeared in Chain News ABMedia.