One of the most prominent members of Congress has disclosed call options being exercised in leading electric vehicle company Tesla Inc (NASDAQ: TSLA). Here’s how much Pelosi could have made in the move.
What Happened: A new filing shows that Nancy Pelosi and her husband, Paul Pelosi, exercised a Tesla option on March 17, 2022.
The options were $500 calls on Tesla, expiring on March 18, 2022, worth $1 million to $5 million, according to the filing.
They were first disclosed by Pelosi in January 2021, with the purchase of 25 call options on Tesla. It also had showed a purchase price on the calls of $500,000 to $1 million.
The purchase by Pelosi on Tesla options came as members of Congress were working to push through infrastructure bills that included incentives for electric vehicles.
Tesla shares traded at around $635 at the time of the purchase by Pelosi.
An exact purchase price was not disclosed, but the options likely profited several millions of dollars based on the purchase time and the current price of Tesla shares.
Related Link: Exclusive: Unusual Whales Creates Nancy Pelosi ETF So You Can Track Her Trades
Why It’s Important: Pelosi is among the members of Congress who have been criticized for their active stock trading during their time in office. Pelosi’s husband Paul runs a venture capital firm and his trades are disclosed as part of the STOCK Act.
There are increased calls for members of Congress to be banned from trading stocks while in office.
Pelosi openly opposed legislation in December 2021.
“We are a free-market economy. They should be able to participate in that,” Pelosi said of members of Congress.
Pelosi has since supported a ban on stock trading by members of Congress in 2022 and is among those pushing legislation through.
Pelosi was among the ten best stock traders in Congress in 2021, according to a report from UnusualWhales.
Pelosi ranked sixth in terms of 2021 performance and ranked second in terms of option purchase volume. Her option purchases last year saw average gains of 36.6%, according to the report.
TSLA Price Action: Tesla shares closed at $987.77 on Tuesday and have traded between $546.98 and $1,243.49 over the last 52-weeks.
Photo by Gage Skidmore on Wikimedia
