Nancy Pelosi bets up to $6 million on Intel and Uber, public disclosures show
Nancy Pelosi bets up to $6 million on Intel and Uber, public disclosures show.
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Former House Speaker Nancy Pelosi is once again drawing attention on Wall Street after newly disclosed trades revealed millions of dollars in fresh bets.
According to congressional disclosure filings (1), Pelosi purchased up to $6 million worth of call options on Intel and Uber.
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With each option contract controlling 100 shares, Pelosi now controls over 20,000 Intel (NASDAQ: INTC) shares, with a strike price of $50 until March 19, 2027. She holds the same call option in Uber (NYSE: UBER), with the same expiration date.
Unlike buying shares outright, call options allow investors to control a large number of shares without having to pay the full purchase price. The buyer of a call option has the right, but not the obligation, to call and purchase the stocks. The seller must sell at the predetermined price. The method is favored by experienced investors, as it allows them to speculate on whether a company's stock will rise.
In Pelosi's case, rather than spending millions to purchase the shares outright, she paid an option premium to secure the right to buy the shares later. It's unclear when she purchased the call options, but she disclosed the transactions on May 29.
The investments come as Intel undergoes an impressive turnaround. The stock has surged 496% over the past year (2), marking a staggering comeback as the company attempts to build its manufacturing business. Intel is currently trending at about $129.
Uber, on the other hand, has remained relatively stable and profitable. Uber shares are currently trading just below $70, meaning Pelosi's $50 strike price on Uber is also sitting well below current market value.
It's not clear what Uber and Intel's stock prices were when Pelosi purchased the call options. But if they were higher than the $50 strike price, this options strategy is common and is known as "in the money" and can come with higher premiums (3).
Pelosi is no stranger to making big and strategic investments. The former House Speaker has attracted widespread attention— and criticism—over her well-performing and diverse portfolio. Trades are officially disclosed under her husband Paul Pelosi's name and include investments in Amazon, Google, Nvidia and Apple.
The family's portfolio has not only brought returns that outpace the S&P 500, but at times has also outperformed the track record of legendary investor and billionaire Warren Buffett (4).
Her husband's portfolio has even triggered the launch of the Pelosi Tracker (5), a website dedicated to tracking her family's (and other Congress members) investments. According to that site, the Pelosi's currently have more than $40 million invested.
Meanwhile, her net worth sits at an estimated $234 million (6).
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