If You Want to Be a Better Trader...
...Become a Member of Congress, or the Senate
…or be the spouse of a member of the U.S. government.
Yet again, Nanci Pelosi’s husband, Paul Pelosi, owner and operator of Financial Leasing Services, Inc., a venture capital investment and consulting firm, just happened to purchase some very profitable call options right before a major government announcement that helped to ensure that said call options ended up being quite profitable. Just this week, the Pentagon cancelled its JEDI cloud deal with Microsoft, leaving the door open for Amazon to swoop in to grab such a contract. Oddly enough, Paul Pelosi purchased a large number of Amazon call options (as well as call options for other companies that may be awarded this contract that Microsoft just lost) just weeks before this announcement, and, oddly enough, all of the underlying stocks for these call options quickly rose in value.
Paul’s calls are now very much in the money (ITM).
It seems that Paul has proven to be something of an oracle when it comes to knowing when to purchase and exercise certain types of calls options, as he has a nearly impeccable record of doing so. Just this past March, he “exercised $1.95 million worth of Microsoft call options less than two weeks before the tech stalwart secured a $22 billion contract to supply U.S. Army combat troops with augmented reality headsets” and “In January, he purchased up to $1 million of Tesla calls before the Biden administration delivered its plans to provide incentives to promote the shift away from traditional automobiles and towards electric vehicles”. Man, is Paul good at his job or what?
Sure, our last president was a con man. But a big difference between him and the likes of Nancy Pelosi is that he was as smooth as sandpaper in his cons. Pelosi and the other members of the U.S. government who take part in this insider trading are much more suave criminals.
Oh, but Frank, what is this ZeroHedge source? This looks totally scammy. Okay. Well, then let’s check out this article from the Journal of Financial and Quantitative Analysis entitled “Abnormal Returns from the Common Stock Investments of the U.S. Senate” that is currently being hosted on Harvard’s website. In fact, I’ll go ahead and provide the abstract for the article:
The actions of the federal government can have a profound impact on financial markets. As prominent participants in the government decision making process, U.S. Senators are likely to have knowledge of forthcoming government actions before the information becomes public. This could provide them with an informational advantage over other investors. We test for abnormal returns from the common stock investments of members of the U.S. Senate during the period 1993–1998. We document that a portfolio that mimics the purchases of U.S. Senators beats the market by 85 basis points per month, while a portfolio that mimics the sales of Senators lags the market by 12 basis points per month. The large difference in the returns of stocks bought and sold (nearly one percentage point per month) is economically large and reliably positive.
So, please keep this information in mind as the U.S. government considers cracking down on “meme stock” market manipulation on the part of retail investors or potential criminal activity around cryptocurrency. It’s just much easier for the U.S. government to take action against the little guy than to investigate the malfeasance at play within its own walls.
Let’s hope the guy in the video below isn’t as much of a B.S. artist as the rest of them.
I’m going to promise you. In one year…one year, you’re going to see a different city. One year. We’re going to bring businesses here. We’re going to become the center of life science; the center of cybersecurity; the center of self-driving cars, drones; the center of bitcoins. We going to be the center of all the technology. Miami, you had your run; we’re bringing our businesses back to New York. -Eric Adams, Democratic Mayoral Candidate
Best,
Frank
Twitter: @frankcorva
Currently Listening To: “Why Don’t You Find Out for Yourself?”, by Morrissey
Nice one 👍 Thanks, Frank!