Hacker News Reader

Comment by alexatalktome | Hacker News Reader

Can you name the companies and a source? I recall a few weeks ago there was a HN post about congressman but I didn’t recall seeing cyber security in the list.

View on HN

They made a killing on Tesla calls for one, million dollar investment. https://newsthud.com/disclosure-fillings-reveal-pelosi-purch...

It looks like her TSLA stock is down from when she purchased it, because there is no corresponding sale and TSLA is trading for less than it was on 12/21/2020 (and has been for the last month... the disclosure period for trades). So instead of purchasing an index fund, which would be up 10% since 12/21/20, she purchased TSLA which is down ~5%.

So this trade underperformed the market by 15%, which seems like it is a horrible trade. Am I missing something? Why did you say she made a killing?

They didn’t buy stock, they bought option calls which use leverage to profit massively of small movements in the ticker. They are incredibly risky, and Nancy’s husband bet between 500k and $1M on them, which means that if the trade had gone sour, they could have lost that immediately. That’s WallStreetBets levels of gambling, and a strange behavior for an otherwise safe trader.

Also, AFAIK there has been no update on whether those calls are still open or closed. They could have sold the covered calls already at a massive profit before the stock started to tank.

https://housestockwatcher.com/summary_by_rep/Hon.%20Nancy%20...

Crowdstrike on September of 2020. I remember I went for it too, and it paid really well once the news the government had been hacked came out.

Reply on news.ycombinator.com