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Toe be clear the chips bill has been in the works for quite some time now.
Also for the record it was her husband Paul who is making the trades "Paul Pelosi trades tens of millions of dollars worth of stock and stock options each year, federal records indicate."
From the Insider report: "Speaker of the House Nancy Pelosi's husband, Paul Pelosi, exercised millions of dollars in NVIDIA call options and sold large quantities of Apple and Visa options and shares in late June, according to a new congressional financial disclosure.
Paul Pelosi exercised 200 call options, or 20,000 shares, of NVIDIA worth between $1 million and $5 million, according to the disclosure, which Nancy Pelosi filed Thursday with the House of Representatives.
Paul Pelosi also sold 10,000 shares of Visa worth between $1 million and $5 million and sold 50 call options in Apple valued between $100,000 and $250,000."
There is still no guarantee that the bill will be passed.
Aside from the fact that Zero Hedge remains a Russian propaganda outlet, why would an investor give more credence to the trading activity of the spouse of a politician than the trading activity of executives who actually run these companies and surely know more about the health of their operations? Insider information is readily available, and even that needs to be parsed to be properly understood and can still be wrong in predicting future performance. So why invest based on what Pelosi’s husband is doing?
More than @johnN there are other posters who regularly follow Zero Hedge. Credibility of the information sources is important when sharing them with others.
Seems like Zero Hedge thinks this bill is somewhat of a surprise. Given the fact that it's not, and the huge Ohio Intel plant down near Columbus has been in limbo in anticipation of this being officially completed, perhaps disappointed is a better word for what they're feeling. I guess they didn't want to concede an administrative "win" on this issue.
I'm not a stock picker. But I have been buying tech funds for our accounts the past ten days or so. These include TDV, FSCSX, CSGZX, and FTEC. In a sector as diverse as tech, I like to spread my bets around. And I don't mind a little active management.
Prices are down quite a bit. It's not like the importance of tech to our lives will fade away. These sort of tech-specific funds are around 8-10% of our portfolios. And I still have cash on hand should rising rates lead to even better opportunities.
I have not bought any chip-specific funds. Forty years of reading the San Francisco Chronicle business section has left me with the feeling that I'm not nimble enough for getting in and out of chips that don't come in bags from the store. If Paul Pelosi thinks he's nimble enough at his age, more power to him.
Aside from the fact that Zero Hedge remains a Russian propaganda outlet, why would an investor give more credence to the trading activity of the spouse of a politician than the trading activity of executives who actually run these companies and surely know more about the health of their operations? Insider information is readily available, and even that needs to be parsed to be properly understood and can still be wrong in predicting future performance. So why invest based on what Pelosi’s husband is doing?
Okay. Let's apply the disclosure requirements to all, not just to "US congress rep[s]". Would you care to start by disclosing your trades (and ranges of dollar amounts) on a monthly basis?
The violations identified in the business insider article were failures to disclose.
Insider and several other news organizations have identified 65 members of Congress who've recently failed to properly report their financial trades as mandated by the Stop Trading on Congressional Knowledge Act of 2012, also known as the STOCK Act.
Surely I'm not the only one who noticed that the NVDA trade was an exercise of in-the-money (by 53% or more) options on the expiration date of June 17th. Had they not been exercised then, they would have expired worthless.
That's not using insider information. That's trading like a prudent investor with no special knowledge or skills.
@msf, I think that ITM options are auto-exercised at expiry. Only the OTM options expire worthless. The ATM options are tossup - once I got hit by a near ATM option auto-exercise at expiry that became ITM just by a few cents and I mistakenly thought that no one will bother (those were the days with option commissions).
Now, if I have open ITM or near-ATM options, I put a note on my calendar to cover those 1-2 days before options expiry.
Of course, the ITM options also have the risk of random assignments at any time before the expiry.
Just goes to show how often I trade options. (I've only owned ISOs and NQOs.)
According to Fidelity, the option holder can override the auto execution. Which gets us back to the prudent investor. While I could understand someone turning off the exercise of a barely in the money option (e.g. to avoid triggering IRMAA), that's the exception. Normally these execute without any knowledge, insider or otherwise.
Stock options that are in-the-money at the time of expiration will be automatically exercised. ... To prevent automatic exercises, please call us prior to 4:15 p.m. ET, on the last trading day of your options contract.
Trading stocks should be banned, and especially inside trading. (link) "66 members of Congress have violated a law designed to prevent insider trading and stop conflicts-of-interest....While lawmakers who violate the STOCK Act face a fine, the penalty is usually small — $200 is the standard amount — or waived by House or Senate ethics officials."
The speaker should be an example for good ethics, if she really wanted to do something, she would have done it. Nothing new, our politicians don't follow the advice they recommend us to do.
The speaker [i.e. Pelosi] serves as an example of good ethics - she is not among the "66 members of Congress [enumerated in the cited piece] who have violated a law designed to prevent insider trading".
It's not the responsibility of the Speaker of the House to introduce legislation. But if you want to hold the Speaker accountable for perceived ineffectiveness of the STOCK act, then look to John Boehner.
It was under his leadership that the House passed this legislation in 2012. If he really wanted to do something, he would have done more ram through the legislation (417-2 vote) with barely 40 minutes of floor discussion on Feb 9, 2012. https://www.congress.gov/bill/112th-congress/senate-bill/2038/all-actions
"Pelosi should be in jail for hubbies frontrunning trades. Disgusting."
Will you please expand upon anything factual about the "frontrunning".
With the growth sectors sell off through this year into June; purchases into growth and tech sectors in late June was a prudent choice, so far.
From a technical investing standpoint, the RSI 14 in growth and tech sectors had been traveling along the low 30's range. Technical theory indicates an RSI in the 30's range is an oversold indicator, and worth paying attention for a buy point.
Nvidia, in particular, is an excellent investment choice in the tech. sector; as this company has survived many market storms since January of 1999; and remains an important company in the tech. sector. Price performance since going public = +22,171.95% as of Tuesday, 11am. We've traded in and out of this stock several times in the early 2000's. Silly us should have maintained some shares.
Comments
Also for the record it was her husband Paul who is making the trades "Paul Pelosi trades tens of millions of dollars worth of stock and stock options each year, federal records indicate."
From the Insider report:
"Speaker of the House Nancy Pelosi's husband, Paul Pelosi, exercised millions of dollars in NVIDIA call options and sold large quantities of Apple and Visa options and shares in late June, according to a new congressional financial disclosure.
Paul Pelosi exercised 200 call options, or 20,000 shares, of NVIDIA worth between $1 million and $5 million, according to the disclosure, which Nancy Pelosi filed Thursday with the House of Representatives.
Paul Pelosi also sold 10,000 shares of Visa worth between $1 million and $5 million and sold 50 call options in Apple valued between $100,000 and $250,000."
There is still no guarantee that the bill will be passed.
Friends say also lots house members niught lots tech late thurs fri
Prob do orders like Pelosi Monday
Naked cover calls or leap cover calls
Amaz
Nvda
Snow
Qqq
Tqqq
Or soxl
Expect short squeeze techs soon??!!
Amazon nvda snow prob paid senate/congress (mitch McConnell mittromney collins cramer and orther beloved members lots $$$$$mills now)
Prices are down quite a bit. It's not like the importance of tech to our lives will fade away. These sort of tech-specific funds are around 8-10% of our portfolios. And I still have cash on hand should rising rates lead to even better opportunities.
I have not bought any chip-specific funds. Forty years of reading the San Francisco Chronicle business section has left me with the feeling that I'm not nimble enough for getting in and out of chips that don't come in bags from the store. If Paul Pelosi thinks he's nimble enough at his age, more power to him.
This (https://www.businessinsider.com/congress-stock-act-violations-senate-house-trading-2021-9) shows how little was done.
Okay. Let's apply the disclosure requirements to all, not just to "US congress rep[s]". Would you care to start by disclosing your trades (and ranges of dollar amounts) on a monthly basis?
The violations identified in the business insider article were failures to disclose.
Oh, wait.
That's not using insider information. That's trading like a prudent investor with no special knowledge or skills.
Now, if I have open ITM or near-ATM options, I put a note on my calendar to cover those 1-2 days before options expiry.
Of course, the ITM options also have the risk of random assignments at any time before the expiry.
According to Fidelity, the option holder can override the auto execution. Which gets us back to the prudent investor. While I could understand someone turning off the exercise of a barely in the money option (e.g. to avoid triggering IRMAA), that's the exception. Normally these execute without any knowledge, insider or otherwise. https://www.fidelity.com/options-trading/options-auto-exercise-rules
The speaker should be an example for good ethics, if she really wanted to do something, she would have done it. Nothing new, our politicians don't follow the advice they recommend us to do.
It's not the responsibility of the Speaker of the House to introduce legislation. But if you want to hold the Speaker accountable for perceived ineffectiveness of the STOCK act, then look to John Boehner.
It was under his leadership that the House passed this legislation in 2012. If he really wanted to do something, he would have done more ram through the legislation (417-2 vote) with barely 40 minutes of floor discussion on Feb 9, 2012.
https://www.congress.gov/bill/112th-congress/senate-bill/2038/all-actions
You stated: Will you please expand upon anything factual about the "frontrunning".
With the growth sectors sell off through this year into June; purchases into growth and tech sectors in late June was a prudent choice, so far.
From a technical investing standpoint, the RSI 14 in growth and tech sectors had been traveling along the low 30's range. Technical theory indicates an RSI in the 30's range is an oversold indicator, and worth paying attention for a buy point.
Nvidia, in particular, is an excellent investment choice in the tech. sector; as this company has survived many market storms since January of 1999; and remains an important company in the tech. sector. Price performance since going public = +22,171.95% as of Tuesday, 11am. We've traded in and out of this stock several times in the early 2000's. Silly us should have maintained some shares.
Thank you for taking time to respond.
Remain curious,
Catch