Nancy and Paul Pelosi have become a subject of fascination for retail investors. Paul is an investment banker and Nancy is the speaker of the U.S. House of Representatives.
Using data derived from Unusual Whales, a website geared at alerting retail investors to large and unusual options flow movements, we can get a clearer picture of what strategies Paul and Nancy use in the markets.
In 2021, the Pelosi portfolio held a total of $45,707,479 in assets, with 56% of the holdings in the technology sector.
Much of the equity in 2021 came from the $7.1 million in options reported in their 2019 disclosure. Some of those positions included Amazon (NASDAQ:AMZN), Tesla (NASDAQ:TSLA), Disney (NYSE:DIS) and other big tech services.
Using the chart above, we uncover Pelosi's plays to infer the strategies used that helped them beat the S&P 500 by 24% in 2021:
- Calls on big tech - The Pelosiss had strong conviction in the technology sector in 2021
- In-the-money (ITM) LEAPS - They purchase contracts with an expiration date of one year or greater
- Sell/Exercise - In each case outlined above, the contracts were exercised, or sold the day of expiration
Photo: courtesy of Gage Skidmore via Flickr