When it comes to trading, everyone has their own strategy. Some rely on technical analysis, others focus on fundamentals. But what if I told you there’s a particular trader out there who consistently outperforms, someone who seems to have an uncanny knack for making the right moves? I’m talking about none other than Nancy Pelosi.
Now, before you dismiss this as just political hype, let me tell you—Nancy is one of the most consistent and profitable traders to watch. Her track record speaks for itself, and when she discloses a trade, it’s often a strong signal that something big is coming.
Today, I’m going to walk you through how we used Pelosi’s trades to make serious gains trading options, focusing on her NVDA trade and the steps we took to follow her lead.
The Setup: Nancy’s Big Move on NVDA
On June 25, 2024, Pelosi disclosed a major purchase: $5 million worth of NVDA stock. When someone like Pelosi makes a move of this size, you’d be wise to pay attention. But we didn’t jump in blindly. Here’s why her NVDA trade caught our eye:
NVIDIA (NVDA) was already a hot stock in the tech sector, driven by its dominance in AI and semiconductor industries.
Around this time, there was significant buzz in the market about AI advancements, which naturally benefited NVDA.
Pelosi’s history of well-timed tech trades gave us the confidence that something substantial was in the works.
So, two days later, on June 27, 2024, we followed her lead. Rather than buying the stock outright, we executed a call option strategy that amplified our returns.
Our Trade: Capitalizing on Pelosi’s Signal
Here’s the exact trade we placed:
Ticker/Type: NVDA Call
Strike Price: $125
Expiration: 08/16/2024
Entry Date: 06/27/2024
Entry Price: $9.80 per contract
Number of Contracts: 30
Target Exit Price: $13.45
Why did we pick this particular setup?
Strike Price: With NVDA trading in a strong uptrend, we chose a slightly in-the-money strike price ($125) to minimize risk while still capturing strong upside potential.
Expiration Date: We gave ourselves time, choosing an expiration far enough out (08/16/2024) to allow the stock to move, but close enough to capture the momentum we anticipated.
Market Context: Why NVDA Was Poised to Explode
The timing of Pelosi’s purchase couldn’t have been better. NVIDIA was riding the wave of the AI boom, with the market expecting significant earnings growth from its data center and AI chip divisions. Additionally, ongoing semiconductor supply shortages put a premium on NVDA’s products, further fueling investor excitement.
Around the time of our trade, there was also speculation of major new contracts for NVIDIA's AI technologies, which increased bullish sentiment on the stock. All of these factors combined to create a perfect storm for NVDA, making it one of the hottest stocks in the market.
But here’s where it gets interesting—while we typically cross-reference trades between politicians, dark pools, insider trading, and news, when Pelosi makes a move like this, we sometimes step aside from our usual layers of confirmation and move quickly. Pelosi’s trades are often a strong enough signal on their own, and this was one of those rare cases.
The Exit: Taking Our Profits at the Right Time
Fast forward to July 10, 2024. After just 13 days, NVDA had moved exactly as we anticipated. The options we bought for $9.80 had risen to $13.45, a tidy +37.24% gain. Here’s what that looks like:
Cost per contract: $9.80
Sell price: $13.45
Profit per contract: $3.65
Total contracts: 30
Total profit: $10,950
By following Pelosi’s trade and amplifying it with options, we turned a quick and substantial profit in just a couple of weeks.
Why This Trade Worked (and What You Can Learn)
It’s important to note that while trading based on one indicator alone isn't typically recommended, there are exceptions, and one of them is Nancy Pelosi. Her insider access and timing consistently make her a trader to watch, especially in industries like tech, where political influence can heavily affect the stock’s direction.
Here’s why this trade worked:
Confidence in the Trader: Pelosi has a history of well-timed and profitable trades, especially in tech.
Market Timing: NVDA was riding strong momentum from AI, tech innovations, and supply shortages.
Strategic Use of Options: Instead of buying stock, we used call options to magnify our gains with less capital.
This is just one example of how we use Pelosi’s disclosures to make smart trades, but it's clear that her trading activity provides a powerful insight into market opportunities that shouldn't be ignored.
Comments