The Pelosi's Made This Much on Tesla Stock

Find out how much money members of Congress are making on their stock option trades.

Analyzing Nancy Pelosi’s Tesla Option Trades

On Thursday the 17th of March, House Speaker Nancy Pelosi’s husband exercised 25 call contracts purchasing 2,500 shares of Tesla stock. There has been lots of controversy about whether or not members of the house should be able to trade or not.

So let’s dive in and see just how much money is being made on these moves.

Option details

The call options strike price was $500 and expired on Friday the 18th of March, just one day after they were exercised by Paul Pelosi.

The total premium paid for all 25 call options was between $500,000 and $1,000,000. This is a wide range but we can still get a good estimate. We just need to divide $750,000 over 25 and we get about $30,000 per contract.

Actual price paid per share

Using this information we can conclude that the cost basis on the shares including the premium lost upon exercising is around $800 per share.

We arrive at this number by adding the premium paid per share of $300 to the strike price of $500, resulting in a cost basis per share after a premium of $800.

And if 2,500 shares were bought at $800 per share that means the position is worth a total of about $2,000,000.

Total profit

The current price of Tesla stock is about $1,000 so this means the position is now worth $2,500,000 netting about a $500,000 profit on that trade. When you are reading this article it will most likely be at a different price.

To calculate the price you just have to multiply the number of shares owned which is 2,500 to the current Tesla stock price.

Do you believe that members of congress should be able to actively trade stocks and options? I would love to hear your thoughts.