Nancy Pelosi bought a huge amount of “Call” options. Who knows why ..
House Speaker Nancy Pelosi of Calif., Speaks to the media, Wednesday Dec. 30, 2020, on Capitol Hill in Washington. (AP Photo / Jacquelyn Martin)
The President of the US House of Representatives, Democrat Nancy Pelosi, bought millions of call options in companies from Alphabet, Micron, Roblox, Saleforce and Walt Disney. The expiration of these options, disclosed for the disclosure requirements of the US regulations, is not known, but it is known that they will fall in 2022 and 2023. A "Call" option is a right to purchase a security at a predetermined price, for which indicates that an increase in the values of the shares subject to the contract is expected.
Of course it is very strange for a politician to carry out operations of this kind, especially when he has rather precise ideas about the legislation that will be put in place by the government and the parliamentary majority. Pelosi has consistently been in favor of free trading for members of the US congress: " We are a free market economy ," Pelosi told reporters at a press conference. “ They should be able to participate in this. "
Not all of the Dems think the same way, especially on the left. New Yorker progressive Alexandria Ocasio-Cortez reiterated her support for banning lawmakers from these practices. Ocasio-Cortez and other members of Congress argue that lawmakers have access to information that the public is unaware of so they should refrain from trading.
In fact, there have been numerous cases of stock trading scandal involving members of the US legislative chambers. Currently, Senator Richard Burr is under investigation by the Securities and Exchange Commission for operations carried out in the early days of the pandemic. The Fed found itself in a similar situation and had to ban its officials from owning shares and bonds of individual companies.
Members of Congress are theoretically prohibited from buying or selling stocks based on non-public information, thanks to the Stop Trading on Congressional Knowledge, or STOCK, Act. those made on the basis of data obtained according to one's role.
However, something tells us that imitating Pelosi's trading could be quite profitable …
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Article Nancy Pelosi bought a huge amount of "Call" options. Who knows why .. it comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/nancy-pelosi-ha-comprato-unenorme-quantita-di-opzioni-call-chissa-come-mai/ on Fri, 31 Dec 2021 10:00:36 +0000.