Former Speaker of the House of Representatives and Representative. Nancy Pelosi (D-Calif.), who is an aggressive investor among members of Congress, disclosed in late June the purchase of call options in the chipmaker Broadcom Corporation. AVGOAfter peaking in mid-June, stocks experienced a broad consolidation move.
What happened: Trading platform TrendSpider posted a daily chart of Broadcom on X, formerly Twitter, which shows a technical formation that points to a bullish future. The stock is on track to complete a head pattern and should reverse, having completed the left shoulder in early July and the head in mid-August.
The inverted head and shoulders chart pattern is commonly used to identify bullish reversals and this pattern signals a possible change from a bearish to an uptrend when price breaks above the “neckline”.
“Pelosi has $AVGO call options for June 2025, do what you want with this information,” TrendSpider titled the post.
Social media users expressed their opinions on the post, with one saying: “She never loses.”
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Why it is important: Pelosi is a closely watched stock trader in Congress, and interest in her actions is such that Pelosi portfolio trackers exist. Lawmakers are required to disclose their financial holdings within 45 days of any transaction, and the value of the transactions is usually listed in a range.
Pelosi’s 20 Broadcom call options were purchased on June 24, with a strike price of $800 and an expiration date of June 20, 2025. The purchase was made after the company reported its second-quarter results on June 12 and announced a 10-for-1 stock split. The shares began trading on a split-adjusted basis on July 15.
The congresswoman's call options now have a strike price of $80, giving effect to the split. One option contract represents 100 shares of the underlying stock. A call option gives the owner the right, but not the obligation, to buy an underlying security at a specific price within a specified time frame, which is the expiration date. He or she can also sell the call option to another buyer within the expiration date.
Broadcom is scheduled to announce its third-quarter results after the market closes on Thursday. Given Broadcom's exposure to AI and its peer position Technology from Marvell, Inc. MRVL Following a strong quarterly report, analysts are largely optimistic about upcoming results.
Broadcom shares, which fell to a post-split low of $128.50 amid the Aug. 5 market crash, have climbed back up. In premarket trading, the stock was down 0.49% at $162.02, according to a report by the Stock Exchange. Data from Benzinga Pro.
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