The Maverick of Wall Street: Nancy Pelosi Buys the Dip
It’s been no secret that Speaker of the House Nancy Pelosi has managed to become one of the best traders of all time. Thanks to disclosure forms, she’s shown an uncanny knack for getting into stocks (and options on stocks) right before a big move higher.
And overall, following her trades has been a simple way to make decent returns in a short amount of time. Now, Madam Speaker has just started buying the latest market dip.
The Speaker is a big proponent of buying tech stocks over the years. That sector has been the hardest-hit part of the market in the latest selloff.
And her latest buys may indicate that the market is due for a sizeable rally higher.
Those buys? Call options on Microsoft (MSFT) and Apple (AAPL). Pelosi has put up about $2.1 million on these call options.
That’s a fairly high-conviction trade, given that the cost is nearly 10 years of salary for the Speaker.
While some deride Pelosi’s actions as insider trading, and on some level it is, following her trades can lead to market-beating returns.
Investors just need to bear in mind with options trading that it may become time to sell quickly following a big move higher.